Reeves says Thames Water should find ‘market-based solution’ | Thames Water

Rachel Reeves, investors, instead of placing the company in private management, he wanted to see a “market -based solution for problems at Thames Water.

In July, the chancellor sent a letter to the Thames water creditor group, which represented approximately 100 financial institutions trying to create a rescue plan for the company.

Reeves sent a letter after the comments of the Environmental Secretary Steve Reed in June. MPs said that the government “accelerated our preparations and is ready for all possibilities”. [a] If it was necessary, the Special Management Regime ”.

The explanations are reported to be concerned between some debt holders in the water industry, because these steps will include a temporary form of nationalization and will lead to the restructuring of the net debt of £ 17.7 billion and possible sales of the company to new owners.

Reeves wrote in the letter by Times: “The government accepts the seriousness of the situation that Thames Water faces.

“This solution should not only secure the long -term financial stability of the company, but also a successful return that achieves positive results for customers and the environment.”

However, Reed repeated his previous statements: “The government is preparing for all possibilities in the regulated industries and planning a detailed unexpected situation for a special management regime if it is necessary to ensure the continuous provision of vital public services.”

Thames Water is under the effective control of senior creditors who hold most of the debt heaps since the shareholders have moved away from the company last year.

The water company, which serves 16 million customers in London and Southeast, is on the verge of financial collapse for several years after inadequate investment and dividends for decades.

Thames is looking for a way out of turmoil without having to control the government under a special government regime, which is essentially temporary nationalization. Last month, the government was dealing with the consulting firm FTI Consulting to look at the options, including private administration.

If Thames provides an inappropriate agreement for them, competitor water companies may also result in more complications, as they may also consider the legal process.

The government was approached for a comment.