Overview

• Thames Water has selected US private equity firm KKR as its preferred bidder for a £4 billion equity injection, crucial to avoiding financial collapse.
• The company recently secured court approval for a £3 billion emergency debt bailout to maintain operations through 2026.
• KKR's proposal is expected to result in significant losses for senior bondholders, with discussions on debt restructuring ongoing.
• Thames Water faces mounting challenges, including £20 billion in debt, ageing infrastructure, and heightened public scrutiny over its performance.
• The departure of CFO Alastair Cochran last week adds to governance uncertainties during this critical period for the company.