European High Yield Forum

Notifications
Clear all

Thames Water

1 Posts
1 Users
0 Reactions
86 Views
Slogger avatar
(@edwisealpha-com)
Posts: 5
Active Member Admin
Topic starter
 

Thames Water shareholders withdrew support following demands from UK regulator Ofwat to reduce the company's debt and make structural changes estimated to cost up to £8bn.

· Shareholders, including sovereign wealth funds, resisted Ofwat's demands, leading to a default by Thames Water's parent company.

· Ofwat's conditions, including reducing the gearing ratio, were seen as burdensome by investors, who felt blindsided.

· Thames Water now faces debt restructuring or potential renationalization amid public discontent over sewage pollution.

· Initial proposals by investors for bill increases and regulatory fines were rejected by Ofwat.

· Despite financial struggles, Thames Water has sufficient cash for 15 months but requires substantial investment for infrastructure improvements. The regulator's draft decision on business plans, including bill increases, is due in June, with a final decision at year-end.

 
Posted : 15/04/2024 5:41 pm

Success

Your account has been created successfully

Success

Your categorisation has been upgraded successfully

You can’t re-categorise

Please email [email protected]
if you believe this in error

You do not qualify

Unfortunately you don’t meet the necessary criteria to upgrade your account.