Thames Water - comment

As September rolls in, the creditors of Thames Water are getting restless as they put together a plan to avoid nationalisation. A group holding around £10 billion of the firm’s debt is drawing up a plan to address the new money need for Thames Water. The company needs at least £3.3 billion in equity. The group advised by Akin Gump and Jefferies is currently conducting due diligence before putting together a proposal. The proposal may include the provision of new equity from existing creditors which could both replace or be combined with potential offers of new funds from external parties. In the meantime, the debt continues to turnover and trade to special situation funds with numerous auctions of Thames Water debt being completed over the last couple of months.