Thames Water Faces Special Administration: Government Prepares for Possible Collapse

Britain has appointed FTI Consulting to explore contingency plans for Thames Water's potential administration. The water utility is struggling with debt and aims to secure £5 billion from bondholders. The government ensures preparedness for all outcomes, including a Special Administration Regime, while maintaining the company's stability.

The British government has engaged FTI Consulting to develop contingency strategies should Thames Water, the largest water utility in the country, face collapse and need placement in a Special Administration Regime, according to a government source.

Thames Water is grappling with debt and seeking a £5 billion financing deal from major bondholders to prevent nationalisation. Despite assurances in July that it had sufficient funds for a year, regulatory adjustments are necessary for the financing to proceed.

The government remains committed to acting in the public interest, with readiness for all scenarios, including the potential application for a Special Administration Regime if needed, a spokesperson stated in an emailed response.

(With inputs from agencies.)