Thames Water should go into administration, investor says
Summary
An investor from Hong Kong says Thames Water should go into administration to allow new buyers and better chances to fix the company's problems. Thames Water is close to running out of money and currently has a rescue deal offer from its lenders, who want fewer penalties for pollution issues.Key Facts
- Thames Water could run out of cash within 12 months without help.
- A group of lenders offers to forgive over 25% of Thames Water’s debt and inject new funds if future pollution fines are reduced.
- CKI Holdings, a Hong Kong investor owning Northumbrian Water, wants Thames Water to enter administration so new bids can come in.
- Administration allows an independent manager to run the company while finding a buyer.
- The lenders argue CKI already had a chance to buy Thames Water but did not make a good offer.
- The government prefers a market solution but said it will use administration if needed.
- The water regulator Ofwat is still deciding whether to recommend that lenders take control of Thames Water.
- Thames Water has about 16 million customers in the UK.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
