00:02The cross-classy committee gives a stark warning that the top priority for the bidders called London and Valley Water
00:08is to extract immediate value from Thameswater, not steer it to long-term success.
00:14The report also raises concerns among the MPs on the committee over the lack of information available on the many
00:21creditors in what it claims is an opaque consortium.
00:25The rescue plan by creditors including UK and US investment companies such as Elliott Management and American private capital firm
00:33Apollo Global Management is seen as the final realistic option to avoid Thameswater being placed into a special administration regime
00:42after a previous deal with US private equity giant KKR collapsed in May last year.
00:49Creditors collectively own about £17 billion of Thameswater's debt, Mountain, of more than £20 billion.
00:57The AFRA committee said laws needed to be changed to allow the government to trigger a special administration on performance
01:06grounds without having to wait until the company collapses into insolvency, something it argues may risk a legal challenge from
01:14Thameswater creditors.
01:15This has left Thameswater, the UK's biggest water supplier, in what has been described as a doom loop, according to
01:25the MPs.
Comments