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Investing.com -- Britain has appointed FTI Consulting (NYSE:FCN) to advise on contingency plans for Thames Water in case the country’s largest water utility collapses, Reuters reported on Tuesday, citing a government source.
The heavily indebted and loss-making Thames Water is working to avoid nationalization by securing £5 billion ($6.7 billion) of finance from its senior bondholders.
In July, Thames Water stated it had sufficient funds to continue operations for 12 months. However, the company needs regulatory changes for its financing deal to proceed.
The British government indicated it would always act in the national interest regarding the situation.
"The company remains financially stable, but we have stepped up preparations and stand ready for all eventualities, including applying for a Special Administration Regime if that were to become necessary," a government spokesperson said in an emailed statement to Reuters.
The contingency planning involves potentially placing Thames Water into a special administration regime if necessary.
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