The group of lenders to Kemble Water Finance include ING, Allied Irish Banks (AIB) and the Chinese state-owned Bank of China and Industrial and Commercial Bank of China (ICBC), the Financial Times and Sky News reported.

China’s role in UK infrastructure has been under the spotlight since telecoms groups were forced to strip out Huawei equipment from the UK network and Chinese backers of the Sizewell C nuclear power project were eased out amid security fears.

The announcement raised the prospect of Thames, which has 16 million customers, being temporarily nationalised if it slips into a government-handled administration. Rishi Sunak appears reluctant to pursue this route, although a government project team is examining contingency plans for Thames’s collapse.

  • AutoTL;DR@lemmings.worldB
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    9 months ago

    This is the best summary I could come up with:


    The Dutch bank ING and two Chinese state-owned lenders could play a crucial role in deciding the fate of beleaguered Thames Water, it has emerged.

    The banks are expected to agree an extension on a £190m loan to the parent company of Britain’s biggest water supplier, which is due to be repaid at the end of this month.

    Rishi Sunak appears reluctant to pursue this route, although a government project team is examining contingency plans for Thames’s collapse.

    Ahead of the meeting, the GMB national officer Gary Carter said he would “demand there are no cuts to work force numbers – or terms and conditions”.

    He said: “Any cost-cutting measures being considered by Thames will only be a sticking plaster and will not address the root cause of the company’s problems – a lack of investment by shareholders stretching back decades.”

    Even assuming that lenders will agree to amend and extend the £190m loan due on 30 April 2024, this agreement would probably constitute a distressed debt exchange under our criteria.”


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