UK's Thames Water battles to avoid nationalisation

LONDON (Reuters) -Britain's biggest water supplier, Thames Water, has become a symbol of failure in the country's water sector - blamed for sewage pollution, while its precarious finances have left it teetering on the brink of nationalisation since 2023. 

A group of creditors is leading a last-ditch rescue effort to invest new equity and turn around its performance. If that fails to get the green light the company will enter the government's special administration regime. 

Below is a timeline of how the crisis unfolded. 

June 2023

Thames Water's management asks shareholders, including Ontario Municipal Employees Retirement System, the UK's Universities Superannuation Scheme and China Investment Corp, for 1 billion pounds of fresh equity. 

The government and water regulator Ofwat start drawing up contingency plans to keep the company operating should it collapse financially. 

July 2023

Thames Water investors agree to inject 750 million pounds of new equity to fund a turnaround. The company warns it will need an additional 2.5 billion pounds ($3.37 billion) of equity over 2025-2030. 

March 2024

Thames Water shareholders refuse to provide some of the new equity they had promised to invest. They blame regulatory conditions for making the 2025-2030 business plan "uninvestible".

The company says it will pursue options to secure new funding from new or existing shareholders.

September 2024

Thames Water says it will run out of money within months unless major creditors approve emergency funding. S&P and Moody's slash its credit rating, warning Thames Water is on the brink of default.

October 2024

Thames Water lines up a debt lifeline of up to 3 billion pounds from some of its creditors, which if approved and under certain conditions, will tide it over until May 2026.

December 2024

Regulator Ofwat says Thames Water can increase bills by 35% over the 2025-2030 regulatory period, lower than the 53% rise the company had sought.

February 2025

The company secures court approval for the 3 billion pound debt lifeline.

March 2025

Thames Water says it wants to raise new equity by the end of June as part of a recapitalisation to secure its long-term future. It says it is assessing proposals from six interested parties.

Later that month it names U.S. investment firm KKR as the frontrunner in the equity process. 

May 2025

Ofwat fines Thames Water a record 123 million pounds for breaching legal obligations over sewage treatment and dividend payments.

June 2025

KKR pulls out of a deal to invest in Thames Water. 

The company says it is now focused on a recapitalisation plan led by a group of senior creditors, who plan to invest 3 billion pounds of new equity and write-off some of the group's debts.

July 2025

The government announces plans to overhaul water regulation, which could include giving companies breathing space on fines to help them avoid financial collapse, but it is not clear whether those changes will be made in time to help Thames Water.

August 2025

Hong Kong's CK Infrastructure Holdings wants to acquire Thames Water if it collapses and is placed into the government's special ­administration regime, media reports say. 

October 2025

The senior creditors group trying to acquire Thames Water through a recapitalisation plan presents its latest turnaround plan to the regulator, hoping to win its support. 

($1 = 0.7408 pounds)

(Reporting by Sarah Young in London, additional reporting by DhanushVignesh Babu and Tuhina in Bengaluru;Editing by Elaine Hardcastle)