The American Special Arrows group KKR has withdrew from a deal to inject fresh stocks into Times waterLeave the future of the troubled resource in doubt and increase the possibilities of temporary nationalization.
The largest water supplier in the United Kingdom She chose KKR as her favorite partnerBut the company “indicated that it will not be in a position to follow up.” Representatives said that the Times was now in a “risky position.”
The New York -based KKR was expected to get a 4 billion pounds of £ 4 billion in the water company, which is struggling under the debts of approximately 20 billion pounds.
The Times said that after completing the due care, KKR and senior creditors prepared detailed plans, including the transformation strategy that was shared with the company.
KKR and a group of creditors, including Elliott Management and Silver Point Capital, until last Friday to submit their plans to the Offaat organizer to repair the water company.
The Times Water, which serves 16 million customers in London and Southeast England, is now racing to clarify an alternative plan with OWAT and other stakeholders. It needs to secure new financing for its operations By the end of June.
Sir Adrian Montage, president of the company, said: “While today’s news is disappointing, we still believe that the reconstruction of the company’s sustainable company is in the interest of all stakeholders and continues to work with our creditors and stakeholders to achieve this goal,” Sir Adrian Montage, President of the company said.
“The company will thus apply for discussions on the plan for the senior creditors with Offat and the owners of other interest. The Board of Directors would like to thank adults for the continuous support.”
Bloomberg stated that the KKR proposal involves a reduction of about 8 billion pounds from the Times Water.
If the company fails to secure new funds, it can be placed in a special administrative system by the UK government, which is actually a temporary nationalization.
Some of the prices of the Times Water bonds decreased to record their lowest levels on Tuesday morning. The KKR withdrawal of 2040 bonds for the 4P facilities in the pound sent to 69 pixels, while its distilled bond fell in April 2027 2 euros to less than 68 cents.
Castle Water, the largest independent water retail store in the UK, has worked with the Times Water since 2016, to help. “We are ready, ready and able to support business with the required financing in place and we can move quickly to provide the Times with the operational and financial support it requires,” said a spokesman.
Liberal Democratic Representative Charlie Mainard had been in a previous court case to argue that the Times water should have been placed in a special administration instead of following up the KKR plan. He said that the financial state in the Times Water has led to the postponement of KKR.
“It is not surprising that the deadly state of the company’s financial affairs,” he said. “Whenever the OffAat requests that the Themes water be placed in a special management system, the better. This is the only way to write the company’s debts to a sustainable level.” He added: “This explains the situation that made her that the current restructuring process is very defective.”
Last week, and The company was wounded with penalties of 123 million poundsIncluding a standard fine of 104 million pounds on environmental violations that involve sewage spills, as it failed to operate and manage treatment and wastewater networks effectively.
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The company also received a fine of 18.2 million pounds to break the bases of profits, the first of its kind in the industry, which was Al -Wasim newspaper mentioned for the first time In December. Offaat said that the company paid money for investors, although it was shortened in its customer services and its environmental record.
He appealed to the Times water with the organizer To leave it Those fines to make them more attractive to investors.
Last month, Montage reported deputies on the Environmental Selection Committee that the tool “Very close to money completely running” last year.
On Tuesday, Alcestare Carmeichel, the committee chairman, said he raised concerns about the risk of KKR only as a single bid. “Unfortunately, our concerns have been achieved, and the Times put in a risky position,” he said.
“The government has moved away from recognizing the potential impact of this scenario on public financial affairs, and it must ensure that any acquisition in the public interest and does not line up in the pockets of financial institutions more at the expense of customers and operating performance.”
The senior creditors in KKR and Themes refused to comment.
Pennon Group told the South West water owner that emerging water nationals will help finance its 3.2 billion pounds investment plans, with its financial losses deeper.
Pennsylvania pointed to a record year of investment, as it reported a loss before taxes of 72.7 million pounds for the year until the end of March, a sharp increase in a loss of 9.1 million pounds in the previous year. South Westwater customer bills increased by 28 % on April.
