Downing Street is considering special administration or finding new shareholders to save Thames Water, which has defaulted on debt payments. Nationalisation is ruled out as a solution.
Downing Street is trying its best to avoid a special administration , and both major parties have ruled out nationalising the beleaguered water company Downing Street ’s emergency plan ning to save Thames Water includes putting the embattled utility company into special administration or finding new shareholders to prop it up,has defaulted on debt payments with shareholders refusing to give the company any more funds because they believe the Government and water regulator Ofwat have imposed rules...
The move has been described by some experts as an alternative to nationalisation because the Government would gain control of Thames Water without providing compensation and leaving investors responsible for Thames Water’s debt pile. However, the aim of an administration would be to sell Thames Water on.
Energy supplier Bulb was the last utility company to be placed in special administration, having gone under during the pandemic. Strict regulation of the firm, borne out by years of scandal around sewage pollution, as well as a lack of historic investment makes Thames Water an unpopular company to target for takeover or investment, especially with limited capacity to raise revenue.
He said: “There’s always a price — as seen by Southern Water’s Macquarie deal – the trouble with Thames Water and Kemble is how complex it is.Likelihood rating: 3 out of 5 – While interest seems low, depending on Ofwat’s new plan for bills and any restructuring, there’s always a right price.The most simple solution for Thames Water would be to persuade the existing shareholders to continue to support the business, at least in the short to medium term.
That being said, the takeover of the firm by one of the existing nine shareholders could be a potential solution, if only certain owners are proving obstructive. IPOs are usually reserved for the best private firms, as an opportunity for shareholders to cash in and raise more money to allow a company to expand, rather than to bailout a beleaguered company with limited opportunity to grow.have cited analysts noting how publicly listed water companies including United Utilities and Severn Trent have outperformed their private counterparts.
Downing Street Emergency Plan Thames Water Special Administration Shareholders Debt Payments Nationalisation
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