Thames Water should go into administration, investor says

Thames Water should go into administration, investor says7 minutes agoShareSaveAdd as preferred on GoogleSimon JackBusiness editorReutersThames Water should be put into administration rather than "sleepwalking" into a deal that is bad for customers, according to a Hong Kong-based investor who wants to buy the business.Thames Water is set to run out of cash within 12 months without a rescue deal.A group of its existing lenders has offered to write off over 25% of its debt and inject billions in new money but want leniency from future pollution fines. Hong Kong's CKI Holdings Limited want to table a rival bid.The government has consistently said it would prefer "a market-based solution" and said it could not comment on ongoing negotiations.The group of lenders said CKI already had a chance to buy Thames Water. The government said it would put the utility in administration "if that were to become necessary".The BBC understands that a decision by regulator Ofwat on whether to recommend to government that lenders to the company take ownership of the troubled utility is still under discussion with a "variety of opinions" from board members and a decision expected this summer.CKI Holdings insists that Thames Water's 16 million customers would be better served by allowing it to collapse into administration so that they – and others – could submit new bids to buy and revive the debt-ridden company.The firm's co-managing director Andy Hunter said CKI, which already owns 75% of Northumbrian Water, has a proven track record in owning critical utilities."I think the next owner of Thames Water should be an experienced, credible, long-term focused operator with the expertise and the resources to fix Thames Water," he said."But we seem to be sleepwalking into a conclusion that will result in the next owner of Thames Water – having, doubtless, many attributes – having none of these attributes."Thames Water is...