Thames Water creditors prepare fresh funding backing, Sky News reports
Creditors' Plans and Financial Backing for Thames Water
July 8 (Reuters) - Creditors seeking to take control of Thames Water are preparing to provide fresh financial backing to the debt-laden utility, Sky News reported on Wednesday, citing sources.
Details of the Funding Proposal
• The lenders, who hold a majority of Thames Water's roughly £20 billion ($26.81 billion) of debt, plan to state that they will provide additional funding over the next 12 months, according to the report.
Auditor Review and Annual Results
• The move comes as Thames Water seeks a going-concern opinion from its auditor ahead of a July 15 accounts deadline, Sky News said, adding that the company plans to publish its annual results next week.
• The creditors will provide Thames Water with a "comfort letter" ahead of the accounts filing, Sky News said.
Equity and Debt Injection
• The proposal would inject £3.35 billion of equity and £3.5 billion of debt into Britain's largest water supplier, Sky News added.
• The plan also includes a commitment not to pay dividends until the 2030s, the report said.
Reactions and Previous Proposals
Verification and Comments
• Reuters could not immediately verify the report. Thames Water did not immediately respond to a request for comment outside business hours. Ofwat referred Reuters to the creditor group for comment, while creditor group London & Valley Water declined to comment.
Previous Rescue Packages
• Senior creditors had proposed a multibillion-pound rescue package to stabilize the company, Reuters had reported previously.
• Last month, Britain's government rejected a £10 billion rescue proposal for Thames Water, increasing the likelihood of temporary nationalisation if a turnaround deal fails.
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Reporting Credits
(Reporting by Bipasha Dey in Bengaluru; Editing by Tasim Zahid and Jonathan Ananda)
