GOVERNMENT ministers have appointed insolvency advisors to draw up plans in the event of a potential collapse of Thames Water.
Sky News has reported that the environment secretary, Steve Reed, has appointed FTI Consulting to advise on how to proceed if the struggling water provider goes into special administration.
It could mean that the consultants would act in an administrative role should the government place Thames Water into special administration.
It comes as Thames Water continues to seek a deal to get over £1bn in fines it may have to pay written off, expected to be imposed upon the company as a result of failures to invest in infrastructure.
Chances of such a deal seemed reduced when KKR, who looked set to make a leading bid, pulled out, and talks remain ongoing surrounding the security of the company’s future amid nearly £20bn in debts.
A company spokesperson said: “Our focus remains on a holistic and fundamental recapitalisation, delivering a market-led solution, which includes targeting investment-grade credit ratings and returning the company to a stable financial foundation.
“Constructive discussions with our many stakeholders continue.”
