Cliff Notes
- KKR, previously the preferred bidder to rescue Thames Water, has withdrawn, complicating the company’s financial stability amid a £22.8bn debt crisis.
- Thames Water is now exploring alternative plans with senior creditors and aims to secure a new investment deal by July to avoid special administration.
- The situation follows a government report suggesting the establishment of a super regulator to enhance oversight of the water industry, as Thames’ future hangs in the balance.
Thames Water survival hopes suffer fresh blow | Money News
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.
It is understood that the company hopes a new transaction could be agreed by July.
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.
Thames said that KKR had indicated it was not in a position to proceed. No reasons are understood to have been given.
