Dire State: Thames Utility Drowning in Debt Amidst Payment Delays

After a tumultuous couple of months for the UK’s largest water provider, reports revealed its parent company has failed to keep up with debt payments.

Debts Raking Up

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A recent revelation has shown the turmoil that Thames Water Ltd is facing financially as the debt-ridden water provider attempts to stay afloat.

Thames Water Crisis

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The UK’s largest water provider, Thames Water Ltd, is experiencing a major crisis regarding public relations and its financial state.

England’s Essential Water Provider

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Thames Water Ltd is the main water provider for London and the South East of England and is owned by Kemble Water Finance Ltd, the parent company.

Company Under Fire

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Recently, Thames Water Ltd came under fire for how it handled toxic waste, which it allegedly allowed to be dumped in the Thames over decades of mismanagement.

Thames Water Ltd Debts

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Thames Water Ltd’s parent company, Kemble Water Finance Ltd, is now under scrutiny for failing to keep up with the significantly increased rolling debt payments.

Substantial Debts Defaulted

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According to recent reports, Kemble Water Finance Ltd. defaulted on its debt payments, which exceeded £400 million in bonds.

Kemble Water Finance Statement

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After failing to keep up with the interest payment, Kemble Water Finance Ltd. issued a statement asking its lenders to hold off on punishment.

Company Asks For More Time

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According to the statement, Kemble Water Finance Ltd. needs more time which will “provide a stable platform while all options are explored”.

Thames Water Price Hikes

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Kemble Water Finance Ltd is only funded by profits from Thames Water Ltd, which recently raised prices for its customers.

Debts of £15 Billion

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Allegedly facing debts of £15 billion, according to one government minister, Thames Water made the decision to increase the public’s water bills.

Increasing Water Bills By 40%

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After announcing it would increase water bills by up to 40% for some households, Communities Secretary Michael Gove slammed the company for its decision.

Putting Financial Strain on the Public

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Gove slammed the country for allegedly punishing the public for its debt, which he revealed to be around £15 billion.

Blaming Poor Leadership

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According to Gove, the “leadership of Thames Water has been a disgrace” before he accused the company of “taking advantage” of the public.

Cash Injection Falls Through

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“The answer is not to hit consumers,” Gove insisted after it was revealed that an anticipated £500 million cash injection from shareholders had fallen through.

Advisory Support

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Consultants from Alvarez & Marsal have been engaged to assist Thames Water Ltd. in navigating discussions with its creditors regarding its debt restructuring.

Thames Water’s Customer Range

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Thames Water’s customers are the most of any UK water company, providing water services for over 15 million of the UK’s population.

Further Updates Anticipated

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Kemble Water Finance Ltd insisted that it “expects that it will be in a position to provide a further update in the coming weeks.”

Concerning Update on Thames Water

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Thames Water has also been criticized for allegedly dumping toxic waste into the Thames, which resulted in a concerning development reported in March.

Deadly Bacteria Discovered in Thames

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According to the reports, the deadly bacteria E.Coli was found in the river ahead of the annual Gemini Boat Race between Oxford and Cambridge.

Annual Tradition Cancelled

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This meant the competitors could not participate in the annual tradition of the winners submerging themselves in the water in celebration.

A Large Responsibility

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With Kemble Water Finance Ltd responsible for such a large customer base in the UK, its financial state could have dire consequences.

The post Water Woes: Thames Utility Drowning in Debt Amidst Payment Delays first appeared on Swift Feed.

Featured Image Credit: Shutterstock / Alasdair Jones.

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