Tham’s Water is in shortage of money four weeks later, so he will seek the approval of an emergency cash lifeline in court on Monday.
Lenders to a company full of debt offer a maximum of £ 3 billion in addition to the additional short -term loans to purchase time to complete the large -scale reorganization of the UK’s largest water and waste company.
If the approval cannot be secured, the edge of Thames may be closer to the temporary nationalization and the government may cost about £ 2 billion per year.
The company is still considering whether to appeal to the Fisheries Regulatory Authority’s decisions to increase the number of invoices that are 35 % exceeding inflation in the next five years.
Thames Water has been struggling for a while, and has been deeply criticized for its performance following a series of sewage emissions and leaks.
The company’s miserable state appeared about 18 months before the search for funds to avoid collapse.
Tham’s failure is a combination of poor historical regulations, greedy shareholders, climate change, and management failures. The debt mountain is currently about £ 17 billion.
However, regardless of what will happen to future companies, water supply to households will continue as usual.
With the latest bidding to survive, the lender provided up to 3 billion pounds with two installments in installments.
The first payment is to pass it until the fall, and the second is used if the company decides to appeal to a competitive market (CMA) for the rise in an invoice of OFWAT by 35 %. 。
The company must start appealing to CMA until February 18.
Investment Bank Rothschilds is looking for a bidding to take over the company and inject very necessary funds.
The court of Monday is scheduled for four days, as a much smaller lender group has challenged the lifeline conditions and proposes an alternative.
If the transaction is not approved by the judge, the Thames will not collapse immediately, but the insider acknowledges that if the failure fails, the company will be one step closer to temporary nationalization (so -called special management system).
The government has already heard many consultants to take on the situation.
The company emphasizes that what happens will continue to continue the service to 16 million customers without interruption, but there are significant questions about the future of Temes and other major infrastructure providers. 。
Some argue that some people should be allowed to bust and take over the company because Thams is an architect of his own unhappy. Previous owners have brought debts to the company and took out large dividends and paid executives. It is terrible to request customers to pay more for failed services.
Others say that poor regulations allowed this confusion. The invoice was maintained too low. This hindered the investment in the elderly infrastructure, which is now overwhelmed by the wet climate. OFWAT is fighting yesterday’s battle, and the company is further deprived of the fines, as the fines have been imposed by imposing tens of millions of pounds of fines. Masu.
Both Thames and the Minister agree that they do not want this vast company in government books. Consultant company Teneo predicts that temporary nationalization costs up to £ 2 billion per year.
However, more wider and more important debate that some people have done are that the Thames River sends a useless message as a private company to international investors. Prime Minister Rachel Reeves wants to invest several hundreds of millions in British airports, wind power plants, and railway links. And everything else on the long shopping list of her growth project.
The sources close to the company and its creditor argue that we cannot suffer and regulate for the past. We are where we are -between rocks and difficult places. Open special transactions for Thames or take the risk of collapse.
Thames has only two weeks to push up an invoice that CMA is allowed. It is not without risk -CMA can correct them.
Last week, the CMA chairman was kicked out by a minister who was not impressed by the lack of focus on regulatory authorities. Thams says that investing 2 billion pounds in the next five years needs higher invoices. It will be an interesting test case for new chairs.
