Administrators lined up for Thames Water
The Environment Secretary has appointed a firm IF the water company fails to secure private funding
Last updated 12th Aug 2025
Administrators have been lined up for Thames Water, if the government can't secure a bailout from the private sector.
The water supplier is around £20-billio in debt, with an investor backing out of a previous rescue deal.
The Government has lined up insolvency specialists FTI Consulting to step up planning for Thames Water in case of the water company's collapse, according to Sky News.
Contingency plans could see Britain's biggest water firm placed into a special administration regime (SAR), meaning it would be put into an insolvency process.
In response, the GMB Union allege "it shows Thatcher's terrible legacy" - claiming that it's "proof private companies shouldn’t be near water. "
A spokeswoman for the Department for Environment, Food & Rural Affairs said: "The Government will always act in the national interest on these issues.
"The company remains financially stable, but we have stepped up our preparations and stand ready for all eventualities, including applying for a special administration regime if that were to become necessary."
Firm still in "crisis mode"
Thames Water, which has 16 million customers, remains locked in talks over a rescue funding deal with a number of senior creditors.
In June, private equity firm KKR pulled out of plans to inject around £4 billion of cash into the financially-stricken company in a bid to keep it afloat.
Thames Water chairman Sir Adrian Montague recently said the firm was still in "crisis mode" as it seeks to avoid special administration measures.
A spokeswoman for Thames Water said: "Our focus remains on a holistic and fundamental recapitalisation, delivering a market-led solution which includes targeting investment grade credit ratings and returning the company to a stable financial foundation.
"Constructive discussions with our many stakeholder continue."
FTI Consulting has been contacted for comment.