Thames Water Lenders Ready Legal Challenge Over £20 Billion Debt as Burnham Weighs Nationalisation
Updated
Updated · bbc.co.uk · Jul 19
Thames Water Lenders Ready Legal Challenge Over £20 Billion Debt as Burnham Weighs Nationalisation
3 articles · Updated · bbc.co.uk · Jul 19
Summary
Thames Water’s creditors are preparing to sue if a Burnham government fully nationalises the utility, seeking repayment in full of nearly £20 billion in debt and potentially leaving taxpayers with a multi-billion-pound bill.
The threat comes after ministers rejected lenders’ rescue plan, which offered to write off £9.4 billion of debt and inject £3.35 billion in fresh cash in exchange for softer future pollution fines.
Thames said on Thursday it has enough cash only until the end of this year, while management estimates funding shortfalls could reach £2 billion by the end of next year under either special administration or nationalisation.
Lucy Powell said Sunday the government could use powers to place a distressed water company into special measures, while Burnham has argued for greater public control of utilities and previously called for Thames to be nationalised.
The crisis at the supplier to 16 million people has become an early test for the incoming government, with any outcome likely to revive the debate over whether water privatisation has failed.