Junior Thames Water bondholders push for changes to £3bn emergency loan
Sky News has learnt that the category B collectors – who bag moreover supplied their very possess emergency financing equipment to Thames Water – want a so-known as compose-entire provision which would maybe well worth a entire bunch of millions of kilos below the A neighborhood’s proposal to be eradicated or made much less laborious.
The compose-entire clause relates to early repayment of the present mortgage.
They moreover want a stipulation preventing Thames Water from refinancing the present debt without creditor approval to be eradicated from the deal.
It used to be unclear on Wednesday whether the category A collectors would be willing to amend their deal along the lines of the category B neighborhood’s quiz.
The fight for defend a watch on of the utility, which has about 16 million customers however is drowning below shut to £20bn of debt, is entering a important phase, with a important resolution on its alternate plan to be delivered by Ofwat subsequent month.
Thames Water is moreover making an try to rob about £3bn in fairness, with investors equivalent to Carlyle, Fortress Water and KKR mad about making offers.
The class A neighborhood’s plan has secured the requisite approval from bondholders, with the additional financing anticipated to aquire Thames Water shut to a year of extra headroom.
The specter of short nationalisation continues to grasp over the firm, however, if Ofwat thwarts its five-year spending plan.
The firm’s shareholders bag already abandoned plans to inject billions of kilos into it, describing it as uninvestible.
Thames Water is imagined to be alive to for the rival creditor teams to affix forces after weeks of competing negotiations
Spokespeople for the 2 teams of collectors declined to comment.