New investors have a deadline of 10 February to submit bids with at least four groups expected to make offers for the firm despite its continuing to spiral.
Some of the potential buyers may want the company to enter a form of temporary nationalisation called a special administration regime (SAR) to reduce its debt pile and replace its current management, The Guardian reported, citing sources with detailed knowledge of two of the bids.
At least one bid has already been made for the firm with the stipulation that it first enters SAR to ensure a “clean slate”, the source told the paper.
Any deal needs court approval before it is completed. A hearing is scheduled for 6 February.
A blueprint codenamed Project Timber has been drawn up in Whitehall, which could see the company effectively nationalised under the SAR contingency plan. The Government has also approached several possible administrators, according to reports.
Thames’ creditors would shoulder most of the losses rather than the Treasury if the Government pursued restructuring with a government-appointed special administrator, it is understood. The measure, however, may still be seen as politically dangerous for the Government.
“These are the very same investors they will need to help fund their big infrastructure projects and the Treasury has to be careful not to spook the debt markets with a wrong move on Thames.”
The average annual bill will rise to £588 by 2030, Ofwat said, £152 more than current levels of £436 a year.
The ruling falls well short of the 59 per cent Thames Water had said it needed in the run-up to the decision to help deal with its growing debt issues, as the embattled water company tries to negotiate a bailout.
square CONSUMER 'Thames Water sent me a £10k bill for a leaking pipe - I don't know where it is'
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It is unclear if any potential sale or nationalisation will increase bills further, but further increases are not out of the question with the troubled firm also facing a fine of £18.2 million from Ofwat for paying £158.3 million in dividends to shareholders which it said were not justified.
Thames Water declined to comment.
A spokesperson for Defra added: “The company remains stable and the government is closely monitoring the situation.”
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