Thames Water - Case Update

Various sources are reporting that the UK Government is preparing to put Thames Water into a special administration regime (SAR) and that it has appointed FTI Consulting to advise it on contingency plans.

Early last month, we wrote about how the debt-laden utility had sought its third set of consents from its senior creditors to draw down an additional £157 million from a £1.5 billion facility in July and August. The facility was approved as part of a restructuring plan sanctioned by the High Court in February, which was meant to provide a bridge as an interim measure to enable a further, more comprehensive restructuring plan to be developed.

Thames Water has been searching for a buyer since that time, and Hong Kong's CK Infrastructure Holdings has reportedly emerged as a leading contender to take over Thames Water after it is potentially placed into special administration, effectively nationalising the company and wiping much of its £16.8 billion debt.

These reports have not yet been confirmed.