ministers are preparing to take Thames Water into temporary public ownership in a rescue that could pave the way for it to be sold off to a Chinese infrastructure company — CK Infrastructure Holdings, owned by Hong Kong billionaire Li Ka-shing’s CK Hutchison.
Don’t ministers realize that any British infrastructure sold to CK Hutchison would in effect be controlled by Beijing / CCP? Haven’t they read about how CK Hutchison’s planned sale of its global ports assets to a BlackRock-led consortium fell through under pressure from Beijing?
Steve Reed, the environment secretary, is understood to be making “active preparations” to put Britain’s largest water utility into a special administration regime (SAR). That would, in effect, nationalize Thames, wiping out much of its £16.8 billion debt, as the government looks for a new buyer.
CKI has made clear that it would be prepared to operate within the new regime of tougher fines for environmental infringements, which Thames’s creditors say is financially unviable.
The company already owns Northumbrian Water and UK Power Networks. Selling Thames to CKI would be controversial.
Concern about Chinese control of critical infrastructure is widespread.
Yesterday, Reed approved the appointment of FTI Consulting to advise on contingency plans for Thames to be placed into special administration, which would ensure that customers continued to receive water and sewerage services should Thames collapse, but could put taxpayers on the hook for billions of pounds in bailout costs when the public finances are already severely constrained.
The special administration process can be instigated only in the event that a company becomes insolvent, can no longer fulfil its statutory duties or breaches an enforcement order.
The government could in effect force the company into special administration if it does not agree to the bailout terms being proposed by creditors.
“It would look like the government siding with one institution with close links to the Chinese state at the expense of blue-chip UK financial institutions.”
Thames has been in financial crisis since the spring of last year when international shareholders quit the company saying it was no longer investable. It is the worst in the sector for pollution incidents and mains leakages.
https://thetimes.com/business-money/companies/article/thames-water-faces-government-administration-amid-financial-crisis-kfkhw5bdk…
ministers are preparing to take Thames Water into temporary public ownership in a rescue that could pave the way for it to be sold off to a Chinese infrastructure company — CK Infrastructure Holdings, owned by Hong Kong billionaire Li Ka-shing’s CK Hutchison.
Don’t 
BlackRock-led consortium fell through under pressure from Beijing?
Steve Reed, the environment secretary, is understood to be making “active preparations” to put Britain’s largest water utility into a special administration regime (SAR). That would, in effect, nationalize Thames, wiping out much of its £16.8 billion debt, as the government looks for a new buyer.
CKI has made clear that it would be prepared to operate within the new regime of tougher fines for environmental infringements, which Thames’s creditors say is financially unviable.
The company already owns Northumbrian Water and UK Power Networks. Selling Thames to CKI would be controversial.
Concern about Chinese control of critical infrastructure is widespread.
Yesterday, Reed approved the appointment of FTI Consulting to advise on contingency plans for Thames to be placed into special administration, which would ensure that customers continued to receive water and sewerage services should Thames collapse, but could put taxpayers on the hook for billions of pounds in bailout costs when the public finances are already severely constrained.
The special administration process can be instigated only in the event that a company becomes insolvent, can no longer fulfil its statutory duties or breaches an enforcement order.
The government could in effect force the company into special administration if it does not agree to the bailout terms being proposed by creditors.
“It would look like the government siding with one institution with close links to the Chinese state at the expense of blue-chip UK financial institutions.”
Thames has been in financial crisis since the spring of last year when international shareholders quit the company saying it was no longer investable. It is the worst in the sector for pollution incidents and mains leakages.
thetimes.com/business-money