Ofwat’s final determination provides for price hikes of 35% over the next five years - before inflation, very much in line with the recent talk of town. On anyone's math

The company now also has struck an agreement with its swap counterparties to back the restructuring for up-front fees and an additional 1% premium. We are

After everything that has been discussed and released in recent months, we find little new information in the September accounts that were released

We were discussing on the desk yesterday how one would actually prevent Thames Water from directly or indirectly paying fines with the

We like how the Covalis bid could work with lower price hikes “so long as concessions could be reached on fines and the pace of capital investment in

We are inclined to dismiss the Castle Water offer, despite the large headline tag of £4bn. We don’t have any details beyond what is in the press, but

The fact that the company continues to drive their agreement under the Class A Proposal is a slight setback to the Class Bs, all the more since the

The Class B proposal was submitted to the company last week after finally obtaining commitments from funds within the group. The key difference from the

While on TW groups are emerging and positioning themselves with or without proposals, Southern Water are only one notch above junk now at

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

Proposals are chasing each other as the As and Bs are squaring up ahead of a December process. This morning, Thames Water announced a proposed

The Labour government plans to appoint an independent commission to review the position and functioning of Ofwat who allowed the regulated debt to

The Class B Holders seem to be fighting back from what would appear a potential restructuring of the Thames Water debt stack where the

The company has managed to roll over a £410 million revolving credit facility that was due yesterday. We believe that it is in the

As the pre-marketing process for the rights issue continues to gather steam, the first ports of call for the company and its advisors at Rothschild & Co. appear to be

The downgrade is a mere reaction to the company’s approval request and therefore admission of tight liquidity, but it could trigger further sales of

While the company's attempt to raise new money through a £3.3 billion right’s issue appears to be more process than prospect, its

We see the request from Thames Water to release £380 million of cash reserves as an opportunity for creditors (especially public market creditors) to get

The government is pondering legislation called the Water (Special Measures) Bill where the potential cost of a bailout (£10 billion) is going to

As the company & its advisers Rothschild continue to engage with potential investors on a £3.3 billion rights issue in parallel to a creditor-led restructuring solution, it appears

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

The immediate impact of the Thames Water (TW) response to the OFWAT determination is negative for the bonds but does not change the outlook much. As we said earlier

It seems that the institution of an independent monitor to remedy its license breach and avoid losing its investment-grade credit ratings is

Now back from vacation, the negative news flow from Thames Water continues. This time the company has agreed to an independent monitor to access its records

Any decision on a Special Administration will be political, and the licence breach will not dictate any Ministerial decision or its

At long last, restructuring talks between select creditors and Thames Water are starting to gather pace. Blackrock, Elliott, Invesco, MetLlife and D.E Shaw have

In a highly anticipated move, the Class A notes were downgraded by Moody’s to Ba1 (one notch into sub-investment grade). The Class B notes were