Barclays Is Selling Thames Water Debt as Rescue Talks Continue
(Bloomberg) -- Barclays Plc is selling £236 million ($320 million) of Thames Water debt as the struggling water operator is locked in talks with creditors over a potential rescue.
The inflation-linked liabilities were offered via an auction where bid were due on Thursday, said people familiar with the matter, who spoke on the condition of anonymity.
Representatives for Barclays and Thames Water declined to comment. Credit publication Octus reported earlier on the debt.
The sale comes after it emerged earlier this week that the UK government has lined up FTI Consulting to oversee the company were it to fall in a potential special administration regime, a temporary state-supervised process akin to insolvency for bankrupt businesses that provide critical services.
The ailing utility has been struggling to stay afloat amid a cash crunch, weighed down by a heavy debt stack and scrutiny over its environmental performance. Senior creditors including Elliott, Silver Point and Apollo Global Management have put forward a recapitalization proposal entailing £5 billion of new funds and a restructuring of its debt, and are now discussing potential concessions with regulator Ofwat.
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