Thames Water: Springboard against the National Takeover

The British water supplier Thames Water is facing a crucial week in which it must gain a court's confidence in its £3 billion rescue proposal. Without this financial injection, Thames, whose debt burden amounts to £17 billion, could be without liquid assets as early as March. The vast majority of senior creditors supports the plan, while a group of lower-ranking creditors opposes it. After Thames recently made some fee adjustments, the company now hopes for broad support. Critics, however, criticize the available package, as it only benefits senior creditors and the costs of 9.75% are considered too high. A verdict is not expected until January. Important dates are ahead, including a creditors' meeting in mid-January. Thames originally encountered financial difficulties when investors considered it "uninvestable" and the government considered possible nationalization. In addition to the current rescue action, Thames Water also requires an equity injection of £3.25 billion and must restructure its debt. On Thursday, the water regulator will outline what fees Thames may charge its customers over the next five years. This decision could be crucial for raising the new equity.