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Thames Water's \u00a31.5 Billion Lifeline
Financial heavyweights offer a \u00a31.5 billion lifeline to Thames Water, Britain's largest water supplier, facing potential collapse due to debt issues. A battle ensues between bondholders, with a court hearing scheduled for December 17th.
English
United Kingdom
Climate ChangeUkEnergy SecurityInvestmentFinanceDebtRestructuringWater
Thames WaterKkr
- What is the next major step in the process?
- An initial court hearing is scheduled for December 17th to address the situation and determine the next steps in the restructuring process. The outcome will significantly impact Thames Water's future and the broader UK water sector.
- What role does KKR play in the proposed restructuring?
- KKR, a large investment firm, is in talks with Thames Water about participating in a \u00a33 billion share sale as part of a wider recapitalisation plan. This share sale is dependent on the success of the proposed debt facility.
- What financial lifeline is being offered to Thames Water?
- A group of financial heavyweights is offering Thames Water, Britain's largest water supplier, a \u00a31.5 billion lifeline to prevent its collapse. This involves a new debt facility and a possible further \u00a31.5 billion, contingent on approval from 75% of all debt classes.
- What is the status of Thames Water's endorsement of the proposed plan?
- Thames Water has already endorsed the Class A group's offer, which involves a new \u00a31.5bn debt facility and a possible further \u00a31.5bn. The Class A bondholders need to secure backing for their proposal within the next two weeks.
- What is the main point of contention between the different bondholders?
- The deal requires the approval of 75% of all debt classes, and a battle has broken out between holders of class A and class B bonds. Both have submitted proposals, with Class A arguing its proposal is more certain and Class B highlighting potential cost savings.