UK's Thames Water rescue plan faces creditor-group appeal
The company is at the centre of a public backlash against the water industry. Mismanagement of Thames Water is blamed for sewage pollution in rivers, and for an 18 billion pound debt pile which has left it on the brink of financial ruin.
Thames Water avoided a state rescue in February when it secured court approval for the new loans, but a grouping of junior creditors and a public interest group have appealed. The court will now sit until Thursday.
Both groups object to the high cost of the new loans and want Thames Water to be put into the government's Special Administration Regime, a form of temporary nationalisation, which would keep water services operating before the company is eventually sold.
Mark Phillips, the barrister representing the junior creditors, said on Tuesday that the debt lifeline gave senior creditors, which include Abrdn, Apollo Global Management, Elliott Investment Management, Invesco, M&G and PIMCO, "valuable additional rights", disadvantaging his clients.
Special administration would treat "all creditors equally", the group said in legal documents.
Lawmaker Charlie Maynard is leading the public interest group's appeal, which is focused on the environment and ensuring value for money for Thames Water customers and taxpayers.
Arguments released on its behalf state that under the debt lifeline, the "terms and cost are much worse for the Thames Water Group...than rescue by special administration".
Thames Water said the debt lifeline plan remained its best option, and would not financially affect taxpayers or customers.
"It allows us to continue to invest in our network to improve critical infrastructure for our customers and the environment," a company spokesperson said.
The government has repeatedly said it wants Thames Water to avoid administration and is focused on reforming Britain's privatised water sector to improve its environmental performance.
But as the legal battle rumbles on, there are worries that Thames Water could run out of money. Following the outcome of the appeals, expected in the coming weeks, either party could decide to take the matter to the Supreme Court.
Environment minister Steve Reed said on Monday the government was ready to step in if needed.
($1 = 0.7734 pounds)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
14 minutes ago
- Reuters
Oil little changed as investors await next steps in Ukraine peace talks
SINGAPORE, Aug 20 (Reuters) - Oil prices were little changed on Wednesday as investors await the next steps in talks to end Russia's invasion of Ukraine, leaving in place sanctions on Russian crude and the chance of further restrictions on its buyers. Brent crude futures were at $65.90 a barrel, up 11 cents, at 0405 GMT. U.S. West Texas Intermediate crude futures for September delivery, set to expire on Wednesday, were at $62.40 a barrel, up 5 cents. The more-active October contract was at $61.90 a barrel, up 13 cents. Prices settled down more than 1% on Tuesday on optimism a deal to end the war seemed closer, which would mean the easing sanctions on Russia and an increase in global supply. "Crude markets are in limbo... continued protracted peace talks will keep the market on its toes," said Emril Jamil, a senior analyst at LSEG. Despite comments from U.S. President Donald Trump on Tuesday the U.S. might provide air support as part of a deal to end Russia's war in the country, he also conceded Russian President Vladimir Putin might not want to make a deal after all. Trump on Monday said he was arranging a meeting between Russian President Vladimir Putin and Zelenskiy, to be followed by a trilateral summit among the three presidents. Trump said on Tuesday he discussed holding possible talks between Zelenskiy and Putin in Hungary with the country's Prime Minister Viktor Orban. Russia has not confirmed it will take part in talks with Zelenskiy. "The likelihood of a quick resolution to the conflict with Russia now seems unlikely," said Daniel Hynes, senior commodity strategist at ANZ, in a note on Wednesday. In the U.S., BP (BP.L), opens new tab said on Tuesday operations at its 440,000-barrel-per-day refinery in Whiting, Indiana, were affected due to flooding caused by a severe thunderstorm overnight, potentially weighing on the facility's crude demand. The site is a key fuel producer for the Midwest market. Prices found some support as industry inventory report indicated steady crude and fuel demand in the U.S., the world's biggest oil consumer. U.S. crude oil inventories fell by 2.42 million barrels in the week ended August 15, market sources said on Tuesday, citing American Petroleum Institute figures. Gasoline inventories fell by 956,000 barrels, while distillate inventories rose by 535,000 barrels from last week, the sources said.
Reuters
44 minutes ago
- Reuters
Hong Kong lender Dah Sing says first-half credit charges surge 34%
HONG KONG, Aug 20 (Reuters) - Hong Kong-headquartered lender Dah Sing Banking Group ( opens new tab said its credit impairment in the first half of this year increased 34% year-on-year, as the weakening commercial property market in Hong Kong weighed on its balance sheets. The lender took HK$780.3 million ($99.97 million) in credit charges for the first six months this year, up from HK$582 million a year ago, according to the bank's earnings release, opens new tab on Wednesday. ($1 = 7.8052 Hong Kong dollars)
Reuters
2 hours ago
- Reuters
Rupee rally to hit speed bump on weak Asian cues, tepid equity flows
MUMBAI, Aug 20 (Reuters) - The Indian rupee's rally to a three-week high is at risk of stalling on Wednesday, pressured by a decline in Asian currencies and lacklustre equity flows. The 1-month non-deliverable forward indicated the rupee will open in the 87.10-87.14 range versus the U.S. dollar, compared with 86.95 on Tuesday, when it hit a three-week high of 86.92. Unwinding of long-dollar positions, Prime Minister Narendra Modi's planned tax cuts and cautious optimism on the Ukraine-Russia front drove the rupee to its best day in seven weeks on Tuesday. The "washout" of dollar longs has left positioning much lighter, and it won't be a driver for the rupee anymore, a trader at a Mumbai-based bank said. "And without a pickup in equity flows, it's hard to see the currency holding near 87." While Indian equities have rallied on hopes that Modi's planned tax cuts will bolster growth, foreign flows remain tepid. Overseas investors were net sellers of local shares on Tuesday after putting in just over $100 million the previous day. Asian currencies slipped between 0.1% and 0.5% on the day, while the dollar index inched up to 98.40. Regional equities were mostly lower, tracking the tech-led selloff on Wall Street. U.S. Treasury yields, meanwhile, fell on Tuesday after S&P affirmed the U.S. credit rating. Much of attention was on a meeting between U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskiy and European allies over the Russia-Ukraine war. Focus now shifts to Federal Reserve Chair Jerome Powell's speech on Friday, with markets watching for any pushback against expectations of a September rate cut. Traders are largely confident a cut is coming, with futures pricing in a more than 80% chance. KEY INDICATORS: ** One-month non-deliverable rupee forward at 87.23; onshore one-month forward premium at 12 paise ** Dollar index up at 98.42 ** Brent crude futures up 0.1% at $65.9 per barrel ** Ten-year U.S. note yield at 4.31% ** As per NSDL data, foreign investors bought a net $116.2 million worth of Indian shares on Aug. 18 ** NSDL data shows foreign investors sold a net $12.7 million worth of Indian bonds on Aug. 18
