Thames Water lenders submit rescue plan to stave off collapse
Thames Water’s lenders presented a new rescue plan to prevent the collapse of British’s largest water company.
London & Valley Water, a consortium of major financial institutions and investors, presented bids to write about one -third of the company’s 20 billion pounds of debt debt stacks and investment to develop services.
The future of Thames has been in balance, because the fears that the company could collapse first emerged more than two years ago.
However, the company’s investors said that the plan will reconstruct the company without any taxpayer financing or government support.
The government is waiting to control some kind of temporary nationalization, as Thames is trying to make a new investment.
The company serves about a quarter of the population of England, mostly in a region of London and Southern England and employs 8,000 people.
However, in recent years, a number of sewage discharge and pipe leakage has faced severe criticisms of performance. In May, the water industry regulator was fined by the water industry regulator to violate the rules for sewage shedding and shareholder payments.
London and Valley Water said on Thursday that his plan was the “fastest and most reliable route” around Thames.
Investors suggested that they would inject £ 5.4 billion to the company to increase their financing, but that cash injection should be determined against “stretching but accessible and realistic performance goals”.
They said that no dividends will be paid to the shareholders during the return plan period and that new shareholders would undertake not to sell the job before March 2030.
Clants, unpaid fines would also be paid.
London and Valley Water, Thames and the water industry regulator, “this autumn as quickly as possible, considering the need to balance Thames juice,” he said.
Under the plan conditions, Thames Water’s future president Mike Mctighe said, “We will inject billions of new investments from the first day,” he said.
“He added that under a new company established,” he added that he will focus on reducing pollution and reconstructing public confidence, so that at the end of this decade, Thames Su can be a reliable, flexible and responsible company.
The revised return plan comes after Thames undergoing a major blow to the attempt to secure the future of the US private capital company KKR from an agreement of 4 billion pounds.
In July, Thames Water’s boss Chris Weston said the company was “extremely stressful” and “return to at least ten years”.
Water bills for households in the UK and Wales increased by £ 10 this year, but costs vary depending on suppliers. For Thames Water’s customer, invoices rose from £ 488 to £ 639 average per year.
