Latest news with #SirAdrianMontague
The Sun
3 days ago
- Business
- The Sun
Thames Water future in doubt as big investor pulls out of rescue deal
THAMES Water's future hangs in the balance after a major investor pulled out of a rescue deal. The water firm, which services around 16million customers, said US private equity giant KKR has pulled out of plans to invest. 1 It is now in talks with creditors, who it owes money to, for an alternative to stabilise its finances, with the firm in billions of pounds' worth of debt. It will also hold talks with regulator Ofwat on the senior creditors' plan. Sir Adrian Montague, chairman of Thames Water, 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.' KKR was chosen as preferred bidder at the end of March to invest more than £3 billion of new equity into Thames Water to help keep it operating amid fears the supplier was running out of cash. Thames Water said at the time it would also continue talks with senior creditors on a parallel alternative transaction, given there was no certainty over a deal being finalised with KKR. But the withdrawal of KKR raises the spectre of a temporary government nationalisation once more, should it fail to secure a rescue deal. Thames Water is about £19billion in debt and MPs were told last month that at one point this year it had about five weeks' worth of cash left before going bust. That was before it secured an extra £3billion loan deal, which effectively stopped it from being renationalised and falling under Government control. Doubling Compensation for Water Issues: Government's Big Move However it still needs substantial ongoing financial support to put its finances on a long-term stable footing. The group was dealt a blow last week when it was fined a record £122.7million by Ofwat after it was found to have broken rules over sewage treatment and paying out dividends. Ofwat insisted that the money must be paid by Thames and its investors, not by customers. Environment Secretary Steve Reed said the Government was 'keeping a very close eye' on any future movements. 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 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.' What water bill support is available? IT'S always worth checking if you qualify for a discount or extra support to help pay your water bill. Over two million households who qualify to be on discounted social water tariffs aren't claiming the savings provided, according to the Consumer Council for Water (CCW). Only 1.3million households are currently issued with a social water tariff - up 19% from the previous year. And the average household qualifying for the discounted water rates can slash their bills by £160 a year. Every water company has a social tariff scheme which can help reduce your bills if you're on a low income and the CCW is calling on customers to take advantage before bills rise in April. Who's eligible for help and the level of support offered varies depending on your water company. Most suppliers also have a pot of money to dish out to thousands of customers who are under pressure from rising costs - and you don't have to pay it back. These grants can be worth hundreds of pounds offering a vital lifeline when faced with daunting water bills. The exact amount you can get depends on where you live and your supplier, as well as your individual circumstances. Many billpayers across the country could also get help paying off water debts through a little-known scheme and even get the balance written off. Companies match the payments eligible customers make against the debt on their account to help clear it sooner. If you're on a water meter but find it hard to save water as you have a large family or water-dependent medical condition, you may be able to cap your bills through the WaterSure scheme. Bills are capped at the average amount for your supplier, so the amount you could save will vary. The Consumer Council for Water estimates that bills are reduced by £307 on average through the scheme.
The Independent
3 days ago
- Business
- The Independent
Concerns Thames Water may need government bailout as bidder withdraws
US private equity firm KKR has withdrawn from plans to invest over £3 billion in Thames Water, a heavily indebted water supplier. Thames Water is now in talks with senior creditors for an alternative plan to stabilise its finances, engaging with regulator Ofwat and other stakeholders. Thames Water chairman Sir Adrian Montague expressed disappointment but affirmed his commitment to working towards 'sustainable recapitalisation'. The withdrawal of KKR raises concerns about a potential temporary government nationalisation if a rescue deal cannot be secured. Thames Water faces approximately £19 billion in debt, and a recent report called for a "fundamental reset" of the water sector in England and Wales due to systemic failures.
Yahoo
3 days ago
- Business
- Yahoo
Thames Water survival hopes suffer fresh blow
The private equity firm that had been the frontrunner to lead a rescue of the UK's largest water provider - Thames Water - has pulled out. Thames Water Utilities, which is staring down the prospect of a special administration process without fresh investment, said an alternative plan was now under discussion after KKR's exit from the process. KKR was handed preferred bidder status back in March as Thames, which serves 15 million customers but has a £22.8bn debt pile, moved to secure fresh equity. Money latest: Thames said that KKR had indicated it was not in a position to proceed and it was understood that no reasons had been given. KKR's withdrawal was announced a week after Thames was handed a record fine by the industry regulator for failures related to its wastewater operations and dividend payouts. The move was also released shortly after an interim report for the government raised the prospect of a super regulator being created to bolster and streamline oversight of the water industry. Thames said it was now progressing talks with senior creditors for an alternative to stabilise its finances and was also planning discussions with regulator Ofwat on that plan. The watchdog is understood to be studying a 400-page document which includes proposals including for new equity and debt facilities. It is hoped a transaction could be completed by next month. The company's 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." Cash-strapped Thames secured a £3bn lifeline to tide it over back in March as the company moved to secure fresh investment to guarantee its long-term survival. It had kept open the prospect of an alternative solution, given there was no certainty over a KKR deal being agreed. A failure to find new investment again raises the prospect of Thames falling into a special administration process. That would effectively see the company come under temporary government ownership to maintain vital services until a new owner, or ownership solution, is found.
Telegraph
3 days ago
- Business
- Telegraph
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' failures. In 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 firms. Sir 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.'
The Independent
3 days ago
- Business
- The Independent
Private equity giant KKR pulls out of plans to invest in Thames Water
Thames Water said US private equity giant KKR has pulled out of plans to invest in the utility and it is now progressing talks with senior creditors for an alternative to stabilise its finances. The heavily indebted supplier – which chose KKR as its preferred bidder at the end of March – said the investment firm indicated it would not be in a position to proceed with a bid and that its preferred partner status had lapsed. Thames Water said it intends to take forward discussions with 'certain senior creditors' on an alternative plan to recapitalise the business. It will also hold talks with regulator Ofwat on the senior creditors' plan, alongside other stakeholders. Sir Adrian Montague, chairman of Thames Water, 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.'
