Thames Water - comment

The alternative Class B is now out and we are preparing a scenario in which both sides have a blocking minority in the As and may have to achieve a compromise. The Class B proposal is cheaper (with an 8% coupon and no make whole) which will be more attractive to the Class A RM accounts who are concerned the Super Sr. is taking too big a bite out of their value. 

We have also heard that Assured Guaranty (advised by K&E) has left the Class A Group. The US monoline insures the interest and principal payments to c. £1.9bn of debt within the WBS structure. We are unsure of the true implications that this could have on the UK RP, but we note that in the past some insurers have incorporated a control mechanism into the docs, which had the potential to convert the insured amount into a claim on the estate.