Latest news with #recapitalisation
News.com.au
5 days ago
- Business
- News.com.au
Toys R Us has gone into voluntary administration for second time in Australia
The publicly listed Toys R Us, which was saved five years ago from going bust, has again gone into administration. In a statement made to the ASX, Toys R Us ANZ said the business had been put into voluntary administration, with BDO's Luke Andrews and Duncan Clubb being put in charge of helping to restructure the previously beloved toy store. 'As previously announced to the market, the company has been pursuing a recapitalisation plan with the support of its primary stakeholders. However, the company is no longer in a position to pursue a solvent recapitalisation plan,' Toys R Us said. 'In light of these events, the board has determined that the company is, or is likely to become, insolvent and that the appointment of an administrator is in the best interests of the company. The appointment of the administrators is effective immediately.' Toys R Us shares have immediately suspended from trading on the ASX pending further announcements. The board of directors said they acknowledged the support of employees, customers and shareholders during this challenging time. This is the second time the company has been placed in administration in Australia in the last five years. In 2020, the then listed ASX Funtastic retailer was reinvented as a hobby, toys and baby-goods business. As part of this restructure and capital raising, through a reverse takeover, Funtastic acquired the Australian e-commerce website for Toys R Us, Babies R US and Mittonit. This is just the latest chapter for Toys R Us, which was previously a stand-alone iconic name in global toy sales before the chain collapsed in 2017.
Arabian Business
6 days ago
- Business
- Arabian Business
Australia
AED47 million recapitalisation secures over 700 jobs as Arada strengthens position in Australia; move lays groundwork for Roberts Co to eventually expand into the UAE
The Independent
7 days ago
- Business
- The Independent
If the government wants to save Thames Water, it's going to need to get its hands dirty
The latest twist in the perma-crisis that is Thames Water came courtesy of the withdrawal of KKR from a rescue plan that now lies in tatters. The US private equity firm would have overseen a much needed £4bn recapitalisation of the debt ridden company, likely involving some of the existing lenders. Consumers may well have looked askance. KKR already has a substantial stake in Northumbrian Water which has itself faced plenty of controversy – and fines – over sewage spills and overcharging and the other sins common to this industry. But at least it wasn't looking to renegotiate their bills, which are already due to rise by more than a third over the next five years. The FT reported that it was hoping to reduce the vast fines faced by the firm – and the obvious problem with that is the message it sends to an industry that has done a rotten job. But it actually made some sort of sense given the company's financial difficulties, so long as strings were attached. The problem with fines like the record £123m penalty imposed on Thames last week is that they will ultimately reduce the resources available to fix its problems (the money typically goes to the Treasury). The decision by KKR, which has made no public comment, comes after weeks of extensive due diligence. Ultimately, the firm appears to have been defeated by both the complexity of the situation and the multiple competing stakeholders involved. Regulators, politicians and, not to put too fine a point on it, some very unhappy consumers who are understandably fed up with the regular sewage spills and the leaks they see going untreated on hot summer days when hose pipe bans are in force. Thames is a distressed asset. If you can get in at a favourable rate and fix it, then (amazing though it may seem) there is the prospect of a handy return. Trouble is, fixing Thames looks like a Sisyphean task even without the multiple cooks stirring the pot. Small wonder that customers are angry, and can't understand how Thames managed to pay dividends and bonuses while they were being told that the thing was teetering on the brink and that they would have to pay (much) more for a shabby service. It scarcely seems possible, but the water industry has somehow contrived to make a dysfunctional domestic energy market, and the companies operating within it, look good. Partly that's down to OfWat, which received its latest kicking courtesy of Independent Water Commission (IWC), led by a former deputy governor of the Bank of England. It has somehow contrived to make energy regulator OfGem look good. The IWC, however, also fired a volley at the political oversight of the sector. It called for a 'fundamental reset' identifying five key areas in need of a shake up ranging from strategy, to regulation, to ownership. Thing is, this is not rocket science. The problems have been staring us in the face for years. I've been writing about them for years. It is a terrible indictment of OfWat, and its political masters, that they have only gotten worse over time. The trouble is, of course, that the dysfunctional water industry is a political hot potato no one wants to grasp. The current administration is falling into the same trap that its predecessors fell into on that front. Steve Reed, the environment secretary, actually had the gall to claim, in an interview with LBC, that 'Thames remains stable'. Mr Reed was obviously seeking to reassure people that they will still be able to turn the taps on and have access to clean water for cooking, cleaning and drinking. However, to describe Thames as 'stable' is shockingly complacent. The preferred bidder has done a runner. Bosses are now scrambling to find a replacement from among the previous bidders, bondholders, hell anyone willing to take on this sow's ear of business, which is making a stellar contribution to the sense of national rot that helps to explains the rise of populists like Nigel Farage. It is often argued that nationalisation would not necessarily deliver a better outcome for the consumer, despite the consistently strong support among the public found by pollsters. And it is true that it would be dangerous to see it as a panacea. I suspect that a temporary spell in public ownership looks like the most likely end game to this sorry saga. But this is not a problem that can be solely fixed by the market, as this latest episode proves. Mr Reed needs to get a grip. So does Rachel Reeves, who is closely involved in this, given the borrowings Thames has. Keir Starmer, too. The current game of pass the buck isn't doing anyone any favours – and there is a real risk that we'll be here again in short order, even in the event that a private sector solution is somehow found. The government needs to accept that it is going to have to get its hands dirty to clean up the water industry. The IWC's interim report would be a good place to start. But Thames requires more immediate action.
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.
The Independent
7 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.'
