Thames Water lenders plot legal fight with Burnham over nationalisation

RegulationCorporate Action Impact 4
โดย Sky News·Read original
Summary · why it matters

A consortium of Thames Water creditors has engaged Pallas Partners to prepare for a multibillion-pound legal battle if Andy Burnham's incoming government forcibly nationalises the utility. The London & Valley Water group, which includes Apollo Global Management, Elliott Management, Farallon Capital Management and Silver Point Capital, holds £17 billion of Thames Water's £21 billion debt pile and is negotiating a £10 billion rescue deal to avert special administration. Burnham's stated support for public control of water companies has heightened fears the deal will be rejected, prompting the consortium to develop a litigation strategy that could challenge nationalisation on multiple grounds. The group insists legal action is a last resort and that it remains willing to work with the government on a solvent restructuring, which under current terms would inject £3.35 billion of new equity, add £6.25 billion of new debt, and write off £9.6 billion of existing debt.

Impact on stocks 1

Aging Population▲ · 1 stocks

Off-coverage companies 5

Thames WaterPrivate▼ Negative
Regulationrelevance

Thames Water faces potential forced nationalisation by incoming government, threatening rescue deal and creditor litigation.

Elliott Investment Management L.P.Private± Mixed
Regulationrelevance

Elliott is part of creditor consortium preparing legal fight against potential nationalisation, but outcome uncertain.

Farallon Capital ManagementPrivate± Mixed
Regulationrelevance

Farallon is part of creditor consortium preparing legal fight against potential nationalisation, but outcome uncertain.

Silver Point CapitalPrivate± Mixed
Regulationrelevance

Silver Point is part of creditor consortium preparing legal fight against potential nationalisation, but outcome uncertain.

Pallas PartnersPrivate± Mixed
relevance

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