Overview

• Two Chinese state-owned banks, the Bank of China and the Industrial and Commercial Bank of China, are key to deciding the fate of Thames Water as it faces a critical £190m debt repayment.
• Thames Water's parent company, Kemble, is in refinancing talks to avoid insolvency, which could lead to temporary renationalisation at significant taxpayer cost.
• The utility is under pressure after refusing to inject nearly £4bn of capital unless demands, including significant bill increases for customers, are met.
• A restructuring led by Alvarez and Marsal could dissolve Kemble, potentially improving Thames Water's survival chances despite its £18.3bn debt.
• Thames Water's crisis has reignited concerns over China's involvement in critical UK infrastructure, amid broader tensions between China and the UK.