Some of Britain's Thames Water's investors are expected to quit the board after they refused to inject more than 3 billion pounds ($3.79 billion) of equity to bail out the nation's biggest water utility company, Sky News reported on Wednesday.
Thames Water, which supplies about a quarter of the British population, was thrown into crisis earlier this year when its owners said they would not provide a 500 million pound equity lifeline to stabilise its finances.
A number of board members at companies connected to Kemble Water Finance, Thames's parent, are expected to resign in the coming days, the report said, without mentioning who the investors are.
Both Thames and the investors declined to comment on the Sky News report.
The company said in March that it had until late next year to secure more funding or risk nationalisation.
Britain's privatised water industry has come under scrutiny after sewage spills have jumped with owners being paid big dividends, loading the companies with debt.
Public outrage over pollution and the prospect of higher bills has put the regulator under pressure to ensure consumers get value for money, but investors say they still need to make returns, resulting in a stand-off over Thames Water.
Reuters
Thames Water investors to quit board after bailout fails, Sky News says
Image: victor10947 / 123rf.com/ File photo
Some of Britain's Thames Water's investors are expected to quit the board after they refused to inject more than 3 billion pounds ($3.79 billion) of equity to bail out the nation's biggest water utility company, Sky News reported on Wednesday.
Thames Water, which supplies about a quarter of the British population, was thrown into crisis earlier this year when its owners said they would not provide a 500 million pound equity lifeline to stabilise its finances.
A number of board members at companies connected to Kemble Water Finance, Thames's parent, are expected to resign in the coming days, the report said, without mentioning who the investors are.
Both Thames and the investors declined to comment on the Sky News report.
The company said in March that it had until late next year to secure more funding or risk nationalisation.
Britain's privatised water industry has come under scrutiny after sewage spills have jumped with owners being paid big dividends, loading the companies with debt.
Public outrage over pollution and the prospect of higher bills has put the regulator under pressure to ensure consumers get value for money, but investors say they still need to make returns, resulting in a stand-off over Thames Water.
Reuters
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