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Thames Water Appoints Chief Restructuring Officer to Manage Debt

By Jessica Shankleman
Engineers from a Thames Water leak hunting team put equipment in place during the crew's night shift in London, UK, on Wednesday, May 2, 2023. Thames Water has more than 800 workers either pinpointing the locations of suspected leaks or fixing the ones that get discovered, as the UK now pressures its water industry to reduce waste as lack of supply threatens water security. (Jose Sarmento Matos/Bloomberg)

(Bloomberg) -- Thames Water appointed Julian Gething from AlixPartners to oversee its debt restructuring, as the troubled utility seeks to avoid temporary nationalization.

The UK’s largest water and sewage supplier said in a press release Monday that Gething would advise on its “complex and ongoing balance sheet recapitalization process”. 

The company is awaiting a court hearing on Dec. 17 to approve as much as £3 billion ($3.8 billion) in emergency debt funding as part of a restructuring plan that will allow it to continue operating into the new year. Even if that is approved, it still needs to undergo a more holistic restructuring next year, which may require some creditors to take haircuts.

Thames is also urgently seeking a separate £3.25 billion in equity to fix chronic leaks and sewage spills, as well as cope with a growing population and climate change. It’s asked for indicative bids from potential investors by Dec. 5.

The company said the creation of the role would not result in any corporate redundancies. Within Thames’ byzantine structure, Gething will sit on the boards of the three regulated companies: Thames Water Utilities Ltd, Utilities Holdings Ltd. and Utilities Finance Plc.  

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