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Thameswater’s top-ranked bondholders group is the de facto frontline of controlling the UK’s biggest water company after US private equity firm KKR left the proposal to recapitulate the company earlier this week.
According to several people familiar with the proposal, “Class A” bondholders, including UK asset managers such as Apollo Global Management and Aberdeen, have signed a new equity commitment that is closer to £4 billion, including UK asset managers such as Aberdeen.
This constitutes the new funds they inject into the company, along with the parallel emergency £3 billion loans that Thameswater secured court approval earlier this year. The funds stopped falling into temporary suzerainization under the government’s special administrative regime.
However, this plan requires OFWAT and a sign-off from the court. The emergency loan was approved only after a lengthy legal battle from rival bondholders.
People close to both the company and OFWAT acknowledged that the approval process could take at least two months. The High Court hearing to approve the restructuring is expected to begin in the fall.
Several people involved in the negotiations said it was infeasible to resume the stock process to other bidders killed when Thames Water gave KKR exclusivity in March.
However, some of these bidders are still hoping for opportunities to take part in the rescue.
Castlewater, a water supplier to businesses, said Tuesday that it is “ready, willing and can do it” to help the business with the necessary funding.
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CKI did not immediately provide a comment. Thames Water and Ofwatt declined to comment.
