Thames Water, Britain’s largest water and wastewater company, which has struggled to stay afloat among a deluge of debt issues, has taken steps to deliver a sustainable recapitalization by partnering with KKR.
KKR was selected to enter the Phase 2 diligence stage of the equity process as preferred partner, following a detailed assessment of proposals Thames Water received.
Thames Water has come under fire in recent years for environmental pollution, a lack of infrastructure maintenance and financial mismanagement. The company has accrued about £19 billion ($24 billion) in debts, according to the Guardian, garnering it a reputation of one of the most highly indebted English water companies in the industry. As a result, it is teetering on the brink of collapse.
Hugo Llwelyn, CEO of Newcore Capital, called the Thames Water situation an “egregious example of over-leverage and underinvestment,” in a recent article published in Institutional Invest
