Unlock free Digest editor
Roula Khalaf, editor of FT, chooses her favorite story in this weekly newsletter.
Thames Water is currently spending £ 15m a month on lawyers, and other advisers, and a possible restructuring account could be £ 200m, said the company’s head financial director in London.
Alastair Cochran discovered a major proposal for the Law on Compensation Act on Tuesday during a crucial hearing of a high court, in which British water levels seek approval to take up to £ 3 billion from creditors to reject a immediate monetary crumb.
Cochran estimated that the total amount was spent on advisers at the time he completed planned Loan from creditorswhich include US HEDGE funds such as Elliott Management would be in the £ 100m region up to £ 120m.
Temma water He said that the planned loan for the emergency cases of his older creditors is a necessary bridge to wider restructuring, which will give him time to raise capital from new investors and negotiate his debts.
Without a loan, Thames Water says he will run out of cash on March 24 and take the risk of crashing into a government Special Administration Regimea form of temporary renationalization. This procedure would allow the services to continue, while the debt is frozen on the eve of the potential restructuring and sale of business or complete nationalization.
Cochran said Thames Water could spend another £ 90m on fees before arranging a comprehensive restructuring later this year, taking a total account of up to £ 210m.
He told the court that these numbers also included “reasonable costs” that Thames Water covered for their creditors, but that “most of these fees were our legal fee.” Financial Times reported last year that Thames Water forecast would spend £ 100m Only on the “cost of consulting creditor engagement” until September 2025.
Magic Circle Linkkleters lawyer advises Thames Water, while the Rothschild & Co Investment Bank oversees the process aimed at raising capital. The US law firm Akin and Quinn Emanuel advise the rival older and younger groups of creditors.
Lower B-Koji class rankings include the Capital Management-Isle Credit investment company challenged the proposed loan from a higher creditors’ rank, claiming that utilities did not properly consider their rival bid for loan at lower costs of less restrictive conditions.
Cochran also told the court that he expects a total interest account of £ 800m up to £ 900 million next year, including the costs of the new class A. Class A. Loan Loan Loan carries a huge 9.75 percent annual interest rate as well as Further fees for lenders.
He denied that the additional costs of the new loan would be submitted by Thames Water buyers, saying that all costs above those allowed by the water regulator allowed by his creditors or new investors in capital.
Finance chief confirmed the figures while William Day crossed him, a lawyer who acts for Liberal Democrat MP Charlie Maynard, whom the court has allowed to speak for public interest and consumer interest. About a third of the Thames Water account account has already started servicing the debt of the utility company, Maynard said in a written submission to the court.
“Better and fair course” would be Thames Water to get into a special administration, Maynard wrote.
Cochran said Thames Water believed that he was in the “best interest” of his customers and creditors to avoid a special administration, but added that utility “would not do so at any cost”.
