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
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
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
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
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
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
According to recent reports, Kemble Water Finance Ltd. defaulted on its debt payments, which exceeded £400 million in bonds.
Kemble Water Finance Statement
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
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
Kemble Water Finance Ltd is only funded by profits from Thames Water Ltd, which recently raised prices for its customers.
Debts of £15 Billion
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%
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
Gove slammed the country for allegedly punishing the public for its debt, which he revealed to be around £15 billion.
Blaming Poor Leadership
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
“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
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
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
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
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
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
This meant the competitors could not participate in the annual tradition of the winners submerging themselves in the water in celebration.
A Large Responsibility
With Kemble Water Finance Ltd responsible for such a large customer base in the UK, its financial state could have dire consequences.
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Featured Image Credit: Shutterstock / Alasdair Jones.