Using government loans to Bulb as a comparison gives exaggerated forecast, experts claim
An independent assessment of the cost of keeping Thames Water afloat during a temporary renationalisation has been exaggerated, according to experts and investors. A report prepared by advisory firm Teneo, and commissioned by the utility for a court hearing to approve a £3bn emergency loan, estimated that the UK government could charge Thames Water 9.5 per cent interest to lend it money to remain operational during a so-called special administration.
Its senior creditors, which include US hedge funds Elliott Management and Silver Point Capital, propose to charge 9.75 per cent interest on the £3bn loan. The junior creditors have commissioned their own expert report from consultancy firm Interpath, which they expect will show that their debt would not be totally written off in a special administration and that they would be worse off under the utility’s proposed restructuring plan.
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