Published by Global Banking & Finance Review®
Posted on June 20, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleThames Water may restate its financial accounts, raising concerns over debt terms and prompting negotiations with Ofwat after KKR's withdrawal.
(Reuters) -Britain's Thames Water may be required to restate its financial accounts for the year ended March 2024, the Financial Times reported on Friday, marking another potential setback for the struggling utility as it seeks to avert nationalisation.
Thames Water is trying to understand the consequences of having to restate key figures in its accounts published last year, the report added, citing documents seen by the newspaper.
There was concern within Thames Water that any amendment to the accounts could prompt one of its senior lenders to allege that a breach of debt terms had occurred, the report said.
The Financial Reporting Council, the UK's accounting watchdog, was aware of the issue, it added, citing people familiar with the situation.
"We follow all UK-adopted International Accounting Standards and take our regulatory accounting responsibilities seriously," a Thames Water spokesperson said in an emailed statement to Reuters in response to a request for comment.
U.S. private equity firm KKR earlier this month walked away from a plan to inject 4 billion pounds ($5.39 billion) of equity in the embattled company, leaving its fate in the hands of senior creditors now negotiating a rescue deal with water regulator Ofwat.
($1 = 0.7426 pounds)
(Reporting by Prerna Bedi in Bengaluru; Editing by Mohammed Safi Shamsi and Jan Harvey)
Thames Water may be required to restate its financial accounts for the year ended March 2024 due to concerns over key figures published last year.
There is concern that restating the accounts could lead one of its senior lenders to claim a breach of debt terms.
The Financial Reporting Council, the UK's accounting watchdog, is aware of the issue regarding Thames Water's financial accounts.
U.S. private equity firm KKR recently withdrew from a plan to inject £4 billion into Thames Water, complicating the company's financial situation.
A Thames Water spokesperson stated that the company follows all UK-adopted International Accounting Standards and takes its regulatory accounting responsibilities seriously.
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