LONDON — British Treasury officials are drawing up contingency plans to rescue Thames Water later this month amid fears the stricken provider could go into special administration.
The debt-laden water company, the U.K.’s biggest supplier, has secured a £3 billion, privately funded rescue loan facility. But it cannot access any of the funds because of a court case brought forward by Liberal Democrat Member of Parliament Charlie Maynard and some of the firm’s creditors.
The case will be heard between March 11 and 13 in the high court, but there is no date set for a ruling.
According to two people with knowledge of the situation, granted anonymity by POLITICO to speak about sensitive matters, Thames Water will run out of money if there is not a resolution to the case by March 24 — which would mean the company crashing into special administration.
