Thames Water Crisis Deepens as Investors Refuse Payout
- Kemble shareholders say Thames plan is “uninvestible”
- Decision raises prospect of insolvency proceedings or bailout
This article is for subscribers only.
The owners of Thames Water Utilities Ltd. are heading for a showdown with the government after shareholders refused to inject £500 million ($631 million) into the troubled supplier.
The decision, announced Thursday, leaves a yawning hole in the finances of the UK’s largest water and sewage company, which could prompt the government to start special administration proceedings, a form of temporary nationalization. Ministers want to see shareholders come forward but investors want better returns before they’re prepared to put money into the company.