Thames Water Seeks Help From Advisors As Debt Crisis Escalates; Government Intervention Likely to Happen
By Thea Felicity
Apr 02, 2024 12:51 PM EDT
Apr 02, 2024 12:51 PM EDT
Thames Water has taken urgent steps to address concerns of collapse by assembling a team of financial experts for restructuring talks, per The Guardian. This is amidst mounting fears regarding its parent company's financial stability.
A report from VCPost indicates that investors have declined to invest additional funds into Thames Water to secure its short-term cash flow, prompting the company to seek assistance from City advisers, including Teneo and Rothschild, to explore potential financing options.
This move comes after the parent company, Kemble Water Group, ceased emergency funding amid disputes with the industry regulator over proposed bill increases, which amount to over 40%.
READ NEXT: Masdar Energy gets GBP 266 million for wind farm development
With over £18 billion ($19 billion) in debt and a looming £190m ($204 million) loan repayment deadline, concerns have intensified regarding Kemble's solvency, potentially leading to government intervention or special administration for Thames Water.
"Now Thames Water customers are facing the worst of all worlds, with water bills set to skyrocket while local rivers are ruined by sewage. Ministers must step in before it's too late," said Sarah Olney MP, a spokesperson of the Liberal Democrat Treasury.
Despite Thames Water's reassurance of adequate cash reserves until 2025, uncertainties persist, prompting calls from politicians and campaigners for urgent action to safeguard customer interests and environmental concerns.
Thames Water and Kemble declined to provide further comments. The government and industry regulator, Ofwat, have also refrained from issuing statements on the matter.
READ MORE: Thames Water's Debt Crisis To Be Passed On To Customers With 40% Bill Hike
© 2024 VCPOST, All rights reserved. Do not reproduce without permission.
Join the Conversation