Tue, 03 Jun 2025

Tue, 03 Jun 2025 Thames Water's future in doubt after investor pulls out

The setback increases the possibility that the company will collapse into a government-supervised administration.

* KKR, a US private equity giant, has pulled out of a £4bn rescue deal for Thames Water due to political and regulatory risks.
* This increases the possibility that Thames Water will collapse into government-supervised administration.
* Thames Water has huge debts (£19bn) and is struggling to fix leaks, stop sewage spills, and modernize outdated infrastructure.
* The company's chairman says it will continue working on an alternative plan with its creditors, which is considered its last chance to avoid administration.
* Castle Water, the UK's largest independent water supplier to businesses, has expressed interest in providing financial support to Thames Water.
* The government is "carefully monitoring" the situation and is prepared to take over Thames Water if necessary.
* An independent review of the water industry has found that it is failing and needs stronger regulation to better protect billpayers and the environment.
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