KKR, one of the largest investors in investment in the world, advances the plans to play a crucial role in the dry of the largest British water supplier.
Sky News has learned that KKR, who manages assets of more than $ 600 billion, hired investment bankers and lawyers to help formulate a plan to inject billions of equity books into the company, which Over 15 million customers.
PJT Partners was hired to act for KKR on his interest in Wames Water before a deadline for proposals for an increase on shares later this month, according to initiates.
The appointment of PJT implies that KKR is seriously interested in helping a rescue of Wames Water, which drowns under 19 billion sterling books and faces the prospect of temporary nationalization in the midst of a bitter legal battle among the groups of rivals rivals .
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An audience at the High Court which begins Monday presents a union of lenders – who wishes to extend up to 3 billion pounds sterling of funding to the company – against another group, which has submitted an alternative plan that he insists is cheaper.
Without the new funding, Thames Water could be forced to a process of insolvency known as the special administration, which has already been used in the United Kingdom in the case of the bulb of the domestic energy supplier.
The special administration would probably cost the government of billions of pounds while a breakdown of the Thames of the Thames is finalized or a buyer is found, and the administration of Sir Keir Starmer said that she wanted to avoid such a result .
However, political pressure approaches criticism from the company that argues that it should not be allowed to add debt burden.
Charlie Maynard, liberal democratic deputy of Witney and long-standing activist for a redesign of the regulation of aquatic companies, submitted a declaration of witness to the court, requesting him to reject a restructuring plan which obtained the approval of the council of ‘Administration of Thames Water.
“Successive governments have seen that the Water Thames plunged into billions of pounds of debt,” said Maynard.
“Thames Water lacks money, he operates in violation of his license, he is unable to pay his debts and his customers suffer.
“The agreement that creditors only push to serve their interests; This is a short -term solution at the expense of the company, customers of Thames Water and British taxpayers. »»
Approval of debt financing of 3 billion pounds Sterling would buy the company’s time to increase new equity.
In addition to KKR, CK Infrastructure Investors Hong Kong, Covale and Castle Water have all been linked to potential offers.
Industry sources believe that KKR and CK infrastructure offer the most credible paths for an increase on actions, although there is no certainty that one of the interests will lead to firm proposals.
The emergence of KKR’s work with advisers also occurs the same month that Wames Water is necessary to decide if he wants to appeal against a decision on his spending plans for the next five years.
Thames Water has asked for authorization to increase the prices of customers by 53% over five years, but the industry regulator was informed that it would be limited to an increase of 35%.
A number of other water companies also consider calls.
Last fall, the Environment Secretary Steve Reed established an independent examination of the industry that will examine large -scale reforms.
We still do not know which KKR funds participate in the Tais Time Water Raise Fairness Process, which is managed by bankers in Rothschild.
The company has John Laing, an infrastructure investor, which he took private in 2021.
He also previously owned South Staffordshire, another water company, selling his interest by 75% in 2018.
KKR refused to comment.