Thames Water’s senior creditors are prepared to bid for the utility even if it is placed into the UK government’s special administration regime, according to a report by the Financial Times.
The creditors, which include Elliott Management and Apollo Global Management, have been seeking to take control of the company after a proposed rescue by KKR collapsed last year. Thames Water, the UK’s largest water supplier, serves 16m customers and is carrying close to £20bn of debt.
The creditor group, operating through the London & Valley Water consortium, has proposed injecting £3.35bn of new equity and providing £3.25bn of fresh debt, with scope for further funding. The plan remains subject to approval from regulator Ofwat, a public consultation and High Court sign-off.
The creditors would reportedly still seek to buy Thames Water out of special administration if the company were temporarily nationalised. The regime would allow an administrator to keep the business operating while a longer-term sale or restructuring is pursued.
Other potential bidders, including CK Infrastructure Holdings and Castle Water, have also indicated interest in Thames Water if it enters special administration.
