A splinter group of lenders to Britain's biggest water company is mobilising to protect its interests as it races to secure a private sector bailout, Sky News learns.
A collection of bondholders in Thames Water are mobilising to protect their interests amid an intensifying battle to avert the company’s nationalisation. Sky News has learnt that Class B bondholders were notified on Thursday they would no longer be part of the same group as the Class A noteholders represented by Jefferies, the investment bank, and law firm Akin Gump. One bondholder source said a potential clash of interests between the two groups of lenders was the reason for the split.
Thames is running out of time to forge a private sector bailout, with a £3bn equity raise said to have little hope of succeeding while the company's investment plans remain subject to approval from Ofwat, the industry regulator.
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