A group of financial heavyweights offering Britain’s biggest water supplier a £1.5bn lifeline are calling on the company’s other backers to accept the plan in a last-ditch effort to save the utility.
Thames water It has been struggling to stay afloat since March when its investors refused to give it more money, raising the possibility of temporary nationalization.
With the deadline to participate a week away, the creditor group is now urging others to support the plan, which will see £1.5bn of new debt facilities, with a potential further £1.5bn.
Thames Water approved the proposal in October, but the deal requires 75% approval of all classes of debt to pass.
Sky News reported that KKROne of the world’s largest investment firms is in talks with Thames Water and its advisers about participating in a £3bn share sale that forms part of a wider recapitalization plan.
The debt facilities currently being proposed are a crucial step towards a share sale and recapitalisation, which executives hope will prevent Thames Water from collapsing.
“Our creditor group is working extensively with the company to develop a plan that will ultimately lead to a restructuring that releases billions of pounds of new investment capital and helps deliver the improved service that customers and the environment deserve,” the group said in a statement. .
“We want to work constructively with all parties to give Thames the best chance of attracting the new equity it needs and allowing for a full recapitalization and successful turnaround.”
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Battle she has It broke out between the owners Of Thames Water’s Class A bonds, which represent the bulk of its borrowings, and its riskier Class B debt.
Both sets of bondholders have submitted proposals to the company, with Class A holders arguing that their proposals are more certain, while Class B holders claiming that their proposals will save the company hundreds of millions of pounds in fees and interest over 12 months.
Thames Water has already backed the group’s Series A bid.
Series A bondholders must now secure support for their proposal within the next two weeks. The initial court hearing is scheduled for December 17.