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Bloomberg
09-07-2025
- Business
- Bloomberg
Thames Water Speaking to Creditors Daily in Race to Fix Finances
Thames Water said it's in daily discussions with creditors as the beleaguered UK utility chases a deal to turn its finances around and fend off nationalization. A rescue hinges on negotiations with the creditors — including the likes of Apollo Global Management, Elliott Management and Silver Point Capital — and regulator Ofwat, and both sides will have to make concessions. Britain's largest water and sewage utility needs to restructure almost £20 billion ($27.2 billion) of debt and raise fresh equity, and it's running out of time to do so.
Mint
07-06-2025
- Business
- Mint
Thames Water Needs £10 Billion Under Elliott, Silver Point Plan
(Bloomberg) -- Funds including Silver Point Capital and Elliott Management are working on a rescue plan for British utility Thames Water that would total more than £10 billion ($13.5 billion), according to people familiar with the matter. The proposal, the main terms of which are similar to the one presented by US alternative investor KKR & Co. before it walked away from its planned investment this week, would involve a sweeping debt restructuring. There would be a multibillion pound haircut for senior creditors, the people said. That would be on top of cuts for the utility's more junior Class B bonds and loans, as well as for debt at the holding level, amounting to approximately £3 billion. The package would also include an equity injection of between £3 billion and £4 billion to stabilize the company's finances. The specific terms of the plan are still being finalized. A spokesperson for the senior creditor group, which includes Silver Point and Elliott, confirmed that it has submitted a detailed long-term turnaround proposal for the company to 'restore its balance sheet, rebuild customer trust and fix the fundamentals of the business.' A spokesperson for Thames Water declined to comment. Thames Water is in a race against time to fix its finances. Britain's largest water and sewage utility is already eating into an emergency loan that it was granted by senior creditors to prevent its cash from drying up, and is scrambling to find fresh equity. The company needs to find a turnaround plan that will reduce its debt pile of nearly £20 billion. Previous shareholders called the company uninvestible, writing off their stakes and leaving it to the creditors. The utility, which supplies about a quarter of the UK's population, came close to running out of money several times before obtaining the emergency loan. The details of the latest proposal, which aims to return the company to investment-grade status, are emerging after Thames Water confirmed it's working with its senior creditors to recapitalize and restore its finances. Regulator Ofwat will need to discuss the details with the creditor group in the coming weeks. The creditors said in a statement this week that the plan is fully-funded. Should the process of raising equity fail, Thames could fall into a special administration regime, or SAR, a temporary state-supervised process akin to insolvency designed for bankrupt businesses that provide critical services. More stories like this are available on
Reuters
06-06-2025
- Business
- Reuters
UK's Thames Water set for over $13.5 billion rescue deal by Silver Point and Elliott, Bloomberg News reports
June 6 (Reuters) - U.S. investment firms Silver Point Capital and Elliott Management are formulating a 10-billion-pound-plus ($13.53 billion) rescue package for Britain's Thames Water, Bloomberg News reported on Friday, citing people familiar with the matter. The deal will comprise a major debt overhaul, including a multi-billion-pound haircut for senior creditors, in addition to reductions already expected for junior Class B bonds, loans and around 3 billion pounds in holding company debt, the report said. The rescue package will provide an equity boost of between 3 billion pounds and 4 billion pounds to stabilize the utility's finances, according to the report. "The Creditors have submitted a detailed long-term turnaround plan that will fix the root causes of Thames Water's problems, restore its balance sheet, rebuild customer trust and fix the fundamentals of the business once and for all," a spokesperson for the creditors, which include Silver Point Capital and Elliott, said in an emailed statement to Reuters. Thames Water did not immediately respond to a request for comment. Thames Water suffered a major setback on Tuesday in its fight to avoid nationalisation, as it said U.S. private equity firm KKR (KKR.N), opens new tab had pulled out of a multi-billion-pound rescue plan. Britain's biggest water supplier is at the centre of a public backlash against the privatised water sector, which has been blamed for polluting Britain's rivers and seas while hiking bills and prioritising dividend payouts over infrastructure investment. ($1 = 0.7393 pounds)
Bloomberg
06-06-2025
- Business
- Bloomberg
Thames Water Needs £10 Billion Under Elliott, Silver Point Plan
Funds including Silver Point Capital and Elliott Management are working on a rescue plan for British utility Thames Water that would total more than £10 billion ($13.5 billion), according to people familiar with the matter. The proposal, the main terms of which are similar to the one presented by US alternative investor KKR & Co. before it walked away from its planned investment this week, would involve a sweeping debt restructuring. There would be a multibillion pound haircut for senior creditors, the people said. That would be on top of cuts for the utility's more junior Class B bonds and loans, as well as for debt at the holding level, amounting to approximately £3 billion.
Bloomberg
03-06-2025
- Business
- Bloomberg
Thames Under Pressure to Find a Rescue Plan After KKR Pulls Out
Thames Water is running out of options for the equity funding it desperately needs after preferred bidder KKR & Co. pulled out of a rescue deal. Thames is now focusing on talks with senior creditors, including Silver Point Capital and Elliott Management, who had been preparing their own plan. Moving forward with this option hinges on finding an agreement with the regulator Ofwat.
