Thames Water creditors ‘will bid for company even if it is nationalised’
Summary
Creditors of Thames Water want to buy the company even if it is temporarily taken over by the government. Thames Water has a large debt and faces financial trouble, and the creditors have proposed a rescue plan involving new investment to keep the company running.Key Facts
- Thames Water owes £17.6 billion and serves 16 million customers in London and the Thames Valley.
- A group of 100 institutional investors owns about £14 billion of Thames Water’s senior debt.
- The creditors propose injecting £3.35 billion in new equity and £3.25 billion in new debt to rescue the company.
- The UK government may temporarily nationalise Thames Water in a process called special administration regime (SAR).
- Temporary nationalisation means the government would run Thames Water to keep services going while seeking a new buyer.
- The creditors view SAR as a temporary step, not a permanent solution, and want to buy Thames Water out of it.
- The current leadership of Thames Water failed to sell the company to a private investor last year.
- Thames Water may run out of money by October if no solution is found.
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