Thames Water Chooses KKR for Recapitalization Plan

Thames Water, the UK's largest water supplier facing a financial crisis, has chosen U.S. private equity firm KKR as its preferred partner for a recapitalization plan. The company, burdened with £16 billion of debt, aims to finalize terms with KKR in the second quarter and complete the recapitalization by the second half of the year. Although KKR's proposal suggests a material impairment of existing senior debt, there is no certainty of a final agreement. Thames Water is simultaneously considering alternative recapitalization options with senior creditors. The decision to engage KKR follows interest from multiple investors, highlighting the urgency to stabilize the utility's finances and avoid a potential taxpayer-funded rescue.