Thames Water holding company defaults on debts
By Iain Gilbert
Date: Friday 05 Apr 2024
(Sharecast News) - Thames Water holding company Kemble Water Finance has defaulted on its debts after failing to make good on an interest payment due earlier this week.
Kemble sent a formal notice of default to the holders of its £400.0m bonds due May 2026 after not making interest payments due on Tuesday.
Restructuring advisory firm Alvarez & Marsal have been working with Kemble as it hopes to commence discussions with its lenders and bondholders regarding its debt structure. Kemble has also asked creditors not to take any action, so that it can best explore "all options".
The utility firm and equity holders have been at loggerheads over the injection of more equity into the firm and have also faced criticism over its poor environmental record.
Last week, Kemble said it would stop making interest payments and wouldn't repay a loan due at the end of the month. This comes shortly after Thames Water shareholders refused to provide £500.0m of fresh equity, which it needs to fund its turnaround plan.
Reporting by Iain Gilbert at Sharecast.com
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