Thames Water creditor compares UK to Puerto Rico over treatment of lenders | Thames Water
The fighter water company Thames Water’s biggest creditor was sure that he would not lose money and despite the British crisis of a disabled debt crisis, the lenders to the water company, he said he was comparable to Porto Riko.
The US insurer’s boss Dominic Frederico guaranteed Garanti, claiming that the United Kingdom government would not harm the creditors. The company was exposed to $ 2.4 billion ($ 1.8 billion) to the bonds of Thames Water, the company was “well protected in terms of legal structure”, in the statement he gave to investors call On August 8th.
“I will put it here on some criticism, and they paid the water bill even in Porto Riko’s case,” he said. “That’s why I assume that the British government will do the same.”
Porto Rico, a US region, has experienced the largest municipal default in modern history since 2014. However, water company debts not hitProtecting refunds for investors.
Comments underlines the expectation that some senior creditors will not lose their money as well as the scale of Thames Water’s crisis. Thames Water is under the effective control of senior creditors holding a large part of £ 17.7 billion of debt piles since last year’s away from the company.
The creditors proposed 5.3 billion pounds of equity and debt injection to get the official control of Thames Water and try to reverse. However, the creditors insist that the water regulator of the British and Wales is not possible to heal without tolerance in pollution fines.
This proposal insisted deeply controversial and environmental secretary Steve Reed and Thames Water should continue to meet the same environmental standards as competitors. The government encountered calls for placement of Thames Water to private administration, which is an effective temporary nationalization that will effectively bring significant losses to creditors.
However, guaranteed guarantee, he said he was sure that he would not lose money and that Thames Water would stay away from government control. Frederico said that the creditor plan is “very comfortable ği to be approved.
Garanti’s exposure to UK water companies increased to over 16 billion dollars JuneFrom $ 10.6 billion March 2022According to three months of applications. His biggest exposure was $ 2.8 billion in Southern Water, another British water company that faced financial difficulties.
The insurer said he felt “quite good” about the exposure of UK to customized water companies. In February, the Chief Finance Manager Benjamin Rosenblum said: “The British government does not really plan to nationalize water public services, and frankly, they do not seem to have a room in their budgets and they want to see additional investment.
Dieter Helm, a professor of Oxford University, who previously advised labor and conservative governments about energy and water policy, said this week that his creditor’s offer was a plan to protect his debts ve and did not deal with Thames Water’s long -term problems.
Helm added that it is not likely to support the debt collections that guarantee revenues, but creditors will harm them. Many of the creditors have purchased the debt as a discounted from the original loans, that is, they will be able to make a large profit even with a large number of people that Thames owes.
A Thames Water Spokesman said: “A special management regime does not solve the problems of Thames Water. It will delay the delivery of improvement for our customers and the environment. It will be destructive, adding risks and uncertainty, increasing costs, preventing our operational return, stakeholder and colleagues will not be able to correct the balance sheet.
“A market -based re -capitalization, financial stability, sustainable investment and customers and the environment for better results for better results.”
The guarantee of assurance and Thames Water Senior creditor group was approached for a comment.
