Latest news with #AdrianMontague
Daily Mail
6 days ago
- Business
- Daily Mail
Thames Water rescue faces 'short and closing window', creditors warn
Thames Water faces a 'very short and closing window' to ensure its survival as a private business after a key investor pulled out of a crucial rescue deal, its major creditors have warned. Private equity giant KKR abandoned its pledge to inject £4billion of equity to stabilise Thames Water's balance sheet and ultimately return the company to the stock exchange in 10 years, it emerged on Tuesday. KKR's exit left Britain's biggest water company once again circling the drain as it struggles to secure its future and avoid nationalisation. The Thames Water Creditor Group said on Wednesday it would continue discussions with industry regulator Ofwat and the Government in the coming weeks, but warned there is little time to secure the 'urgent and fundamental reset' the debt-riddled utility requires. The creditors confirmed they have the 'committed capital, capabilities and expertise needed' to 'fix the root causes of Thames Water's problems, restore its balance sheet, rebuild customer trust and fix the fundamentals of the business once and for all'. Thames, which serves more than 16 million customers, kept the threat of nationalisation at bay in late March after judges dismissed an appeal against the company's £3billion emergency bailout package. Its chair Adrian Montague described KKR's decision as to abandon the group's rescue as 'disappointing'. Before KKR's selection as preferred investment partner, rival suitors included Hong Kong's CKI Infrastructure, UK-based Castle Water and a group of investors led by investment service Covalis. Thames Water became the central target of public outcry over sewage and pollution in the sector, while firms also faced criticism over poor upkeep of infrastructure and bumper shareholder payouts. It also comes as households around the country face double-digit bill increases in the coming years after a controversial funding package was approved by regulators. A spokesperson for the Thames creditors said: 'The [rescue] plan will break from the patterns of the past by delivering customers' priorities and improved outcomes for the environment in the shortest possible timeframe. 'The comprehensive recapitalisation proposal, which is fully-funded and targets a sustainable capital structure, will deliver substantial fresh investment to drive significant change under a new, highly experienced and accountable leadership team. 'These investors have the funding and experience required to deliver a transformation of the company's performance which marks a departure from past failings, creating a "new" Thames Water that works effectively alongside Government and regulators to deliver for the environment and economic growth. 'The creditors believe that Thames Water requires an urgent and fundamental reset and there is a very short and closing window in which a market-led solution can succeed. Discussions with Ofwat and the Government will be advanced in the coming weeks to reach an agreement and turnaround for the benefit of customers and the environment.'
Yahoo
7 days ago
- Business
- Yahoo
Warning issued for 16 million UK households who have major water supplier
16 million households have been warned after a major update over their water supplier. The Thames Water preferred bidder KKR has pulled out of a rescue deal and the future of the troubled supplier is now in doubt. A US private equity group says it cannot proceed with acquiring a £4bn stake. The company has 'indicated that it will not be in a position to proceed', Thames Water said. Sir Adrian Montague, the company's chair, said: 'While today's news is disappointing, we continue to believe that a sustainable recapitalisation of the company is in the best interests of all stakeholders and continue to work with our creditors and stakeholders to achieve that goal. READ MORE: Martin Lewis urges homeowners to check council tax bands as they could be owed thousands READ MORE: Call for one group of UK drivers to be exempt from road tax READ MORE UK faces 'Spanish scorcher' heatwave with 31C as exact date it starts announced 'The company will therefore progress discussions on the senior creditors' plan with Ofwat and other stakeholders. The board would like to thank the senior creditors for their continuing support.' Thames Water, which serves 16 million customers in London and south-east England, needs to secure fresh funding for its operations by the end of June. Labour Party MP and Environment Secretary Steve Reed said the Government was 'keeping a very close eye' on the Thames Water situation. Mr Reed told LBC Radio that 'Thames itself remains stable' but added: 'The Government is clearly keeping a very close eye on what's going on. 'We're monitoring the situation, but there's no disruption to water supply. Thames have got a number of options that they're exploring.' He went on and also said that 'as things stand' Thames Water is 'a stable, ongoing company' but the Government was 'ready for any eventuality'. 'If the circumstances happened with any company, any water company, where there was a breach and it would need to be put into special administration, that would happen but, as things stand, that's not applying to any company right now."
Yahoo
7 days ago
- Business
- Yahoo
Thames Water future in doubt as US backer pulls out of rescue deal
The future of Thames Water has been thrown into doubt after a US private equity giant pulled out of a £4bn deal to buy a stake in the troubled supplier. Thames Water announced on Tuesday that New York headquartered KKR has 'indicated that it will not be in a position to proceed' with the refinancing deal. KKR was previously selected as the company's 'preferred partner' in the fundraising process on March 31 this year. Thames said it now intends to start discussions with water regulator Ofwat and other stakeholders on the best way to proceed. Chairman Sir Adrian Montague said: 'Whilst today's news is disappointing, we continue to believe that a sustainable recapitalisation of the company is in the best interests of all stakeholders and continue to work with our creditors and stakeholders to achieve that goal.' 'The company will therefore progress discussions on the senior creditors' plan with Ofwat and other stakeholders. The board would like to thank the senior creditors for their continuing support.' It comes after a new report said the water industry needed a 'fundamental reset' after being plagued with 'deep-rooted, systemic' an interim report published on Tuesday, the Independent Water Commission called for a 'fundamental strengthening and rebalancing' of Ofwat's regulatory role, calling for the watchdog to adopt a more supervisory approach to its oversight of water Jon Cunliffe, chairman of the Independent Water Commission, said: 'We have heard of deep-rooted, systemic and interlocking failures over the years - failure in Government's strategy and planning for the future, failure in regulation to protect both the billpayer and the environment and failure by some water companies and their owners to act in the public, as well as their private, interest.' This is a breaking news story. More updates to come. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Daily Mail
7 days ago
- Business
- Daily Mail
Major investor quits Thames Water rescue deal as utility circles the drain
Thames Water has been plunged deeper into uncertainty after the embattled utility's preferred investment partner abandoned a critical rescue deal. Private equity giant KKR had been selected to take charge of Thames Water, which has previously warned it could run out of cash, with plans to recapitalise the business and keep it in operation with a £3billion liquidity injection. The debt riddled water group told investors on Tuesday KKR no longer wished to proceed, once again leaving Thames Water at risk of collapse and nationalisation. Britain's biggest water group, which supplies more than 16 million customers, said it intends to progress discussions with industry regulator Ofwat and other stakeholders on plans designed by senior creditors. Chair Adrian Montague described KKR's decision as 'disappointing' but said Thames Water continues to believe 'a sustainable recapitalisation of the company is in the best interests of all stakeholders'. He added: 'The company will therefore progress discussions on the senior creditors' plan with Ofwat and other stakeholders. The board would like to thank the senior creditors for their continuing support.' Before KKR's selection as preferred partner, rival suitors included Hong Kong's CKI Infrastructure, UK-based Castle Water and a group of investors led by investment service Covalis. Thames Water became the central target of public outcry over sewage and pollution in the sector, while firms also faced criticism over poor upkeep of infrastructure and bumper shareholder payouts. The group kept the threat of nationalisation at bay in late March after judges dismissed an appeal against the company's £3billion emergency bailout package. It comes as households around the country face double-digit bill increases in the coming years after a controversial funding package was approved by regulators. An overhaul of the way the industry is regulated was proposed by a government-commissioned review in its interim report published on Tuesday.
Yahoo
7 days ago
- Business
- Yahoo
Thames Water preferred bidder KKR pulls out of rescue deal
US private equity group KKR has pulled out of a deal to inject fresh equity into Thames Water, leaving the troubled supplier's future in doubt and increasing the prospects of a temporary nationalisation. The UK's biggest water supplier had picked KKR as its preferred partner, but the company has 'indicated that it will not be in a position to proceed,' Thames Water said. The New York-based private equity group was expected to acquire a stake worth £4bn in the embattled water company, which is struggling under debts of nearly £20bn. Related: China's factory activity hit by tariffs; KKR pulls out of Thames Water rescue talks – business live Thames said that, after completion of due diligence, KKR and the senior creditors had prepared detailed plans, including a turnaround strategy that had been shared with the company. It now intends to push on with discussions on the senior creditors' plan with the regulator Ofwat and other stakeholders. Sir Adrian Montague, the company's chair, said: 'While today's news is disappointing, we continue to believe that a sustainable recapitalisation of the company is in the best interests of all stakeholders and continue to work with our creditors and stakeholders to achieve that goal. 'The company will therefore progress discussions on the senior creditors' plan with Ofwat and other stakeholders. The board would like to thank the senior creditors for their continuing support.' Thames, which serves 16 million customers in London and south-east England, needs to secure fresh funding for its operations by the end of June. If Thames Water fails to secure fresh funds it could be placed into a special administration regime by the UK government, effectively a temporary nationalisation. Sign in to access your portfolio
