8legs: Ofwat

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Refinancing is delayed at Thames Water. If Ofwat is playing hard, it should keep going | Nils Pratley

Thames Water's refinancing talks are extending beyond expected timelines as creditors and Ofwat press for tougher terms.
Creditors argued for a larger debt write-down and more equity to back a 10-year turnaround at Thames Water.
Officials say the allocative split between day-to-day costs and capital spending must be crystal clear to avoid customers paying twice.
The regulator may retain the power to fine Thames for underperformance despite any leniency on penalties.
government support for a market-led solution adds pressure amid fears Thames could end up in special administration.
Equity investors like Elliott Management could become major shareholders if the restructuring goes through.
Creditors previously proposed a 25% write-down and £3.15 billion equity injection, seen as insufficient by some financiers.
Thames Water argues leniency on fines is needed to avoid a doom loop and to meet performance goals.
Ofwat's negotiating position is influenced by ministers' preference for a market-led resolution.
A potential timeline suggests an outline agreement could be updated before Christmas, but delays persist.

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