Thames Water is battling to avoid nationalization by securing 5-billion pounds of finance from its senior bondholders.Mina Kim/Reuters
Britain has appointed FTI Consulting to advise on contingency plans for Thames Water to be placed into a special administration regime were the country’s largest water utility to collapse, a government source said.
The heavily indebted and loss-making company is battling to avoid nationalization by securing 5-billion pounds ($6.7 billion) of finance from its senior bondholders.
Thames, which said in July it had enough funds to continue operating for 12 months, needs a reset of regulations for the deal to go ahead.
Thames Water faces ire of U.K. parliamentary committee as restructuring efforts flounder
The government said it would always act in the national interest.
“The company remains financially stable, but we have stepped up preparations and stand ready for all eventualities, including applying for a Special Administration Regime if that were to become necessary,” a government spokesperson said in an e-mailed statement.
FTI’s appointment was first reported by Sky News.