KKR Withdraws Thames Water Investment Plans, Company Seeks Alternative Rescue

US private equity firm KKR has withdrawn from plans to invest £3-4 billion in Thames Water, the UK's largest water supplier, causing a significant setback for the heavily indebted company. Thames Water, facing debts of around £19-22.8 billion and recent fines for environmental breaches, is now pursuing alternative recapitalization talks with senior creditors and regulatory body Ofwat. The withdrawal raises the prospect of Thames Water entering a government-supervised special administration, potentially leading to temporary nationalization and significant taxpayer costs. Despite the disappointment, Thames Water's chairman Sir Adrian Montague affirmed the company's commitment to securing a sustainable financial solution in the best interests of all stakeholders. The company had previously secured a £3 billion loan to stave off immediate collapse but still requires fresh funding imminently to remain solvent. With private sector rescue hopes dwindling, the situation underscores the urgent financial distress within the UK water utility sector.