Summary
Thames Water, a major UK water utility, is in financial trouble and heavily in debt. A group of lenders has proposed a rescue plan, but other bidders are upset they were not included in talks. If the company does not receive help soon, it may go into government control.
Key Facts
- Thames Water is struggling financially with nearly £20 billion in debt.
- The current rescue plan involves writing off 25% of the debt and adding over £4 billion in new funds.
- The plan requires leniency from regulators to avoid fines for pollution incidents.
- Other bidders, such as CKI Holdings and Castle Water, were not allowed to participate in creating the rescue plan.
- If the plan goes through, consumers might see their bills go up by nearly 20% over five years.
- CKI Holdings already owns other utilities and wants to participate, but there are concerns about national security due to its ties to China.
- Castle Water is willing to invest more money upfront to improve the utility's infrastructure and performance.
