An article in The Telegraph newspaper is warning that Thames Water is facing a “sink or swim moment as its debt crisis deepens”.
An article in The Telegraph newspaper is warning that Thames Water is facing a “sink or swim moment as its debt crisis deepens”.
According to The Telegraph, the sale by fund managers over the last fortnight of a bond issued by Thames Water (Kemble) has seen the bond fall 20% in value. The bond is down from a price of 50p and is now worth 40p in the pound – six months ago the bonds were worth as much as 87p.
The article says:
“A key portion of Thames Water’s £14bn debt pile has crashed to a record new low in the clearest sign yet that investors are abandoning the embattled group.
“Fund managers who own Thames debt have been dumping some of its riskiest IOUs in recent days over fears the company could fail to repay the debts.”
Last week the financial press was reporting that Thames Water is rescheduling debt as it tries to improve its current financial situation and seeks time to stabilise its finances.
Click here to access The Telegraph article in full
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