Thames Water burns through £15mn a month on lawyers and advisers

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The company’s financial manager in London said that the Times water is currently spending 15 million pounds per month on lawyers and other advisers, and the draft law may eventually lead to restructuring 200 million pounds.

Alastair Cochran revealed the draft law of huge fees on Tuesday during a decisive hearing of the Supreme Court, as it seeks the greatest benefit to water in Britain to obtain approval to obtain up to 3 billion pounds in loans from creditors to avoid an imminent cash crisis.

Cochran estimated that the total amount spent on advisers by time at the time when the planned loan of creditors, which includes American hedge funds such as Elliott Management, will be in the area of ​​100 million pounds to 120 million pounds.

The Times Water said that the planned emergency loan from its senior creditors is a necessary bridge for a wider restructuring, allowing it time to raise shares from new investors and re -negotiate its debts.

Without the loan, the Times Water says it will run out on March 24 and are at risk of violating the government’s special management system, a form of temporary promotion. This process will allow services to continue to operate while freezing debt before the potential restructuring and selling business, or full nationalization.

Kokran said that the Times Water could spend another 90 million pounds on the fees before agreeing to a more comprehensive restructuring later this year, as the total bill increased to 210 million pounds.

He told the court that these fees numbers also included “reasonable costs” covered by the Times for creditors, but “the largest part of these drawings were our legal fees.” The Financial Times said last year that themes Water had expected that it would spend 100 million pounds on “the costs of advisory participation of the creditor” alone by September 2025.

Magic Circle Lawlaters provides advice to the Times water, while the Rothschild & Co investment is an operation aimed at increasing fairness. American law firm AKIN and Quinn Emanuel recommend groups of young competitors, competitors, respectively, respectively.

Class B-Class Class Classes, which includes Polus Capital Management, is looking to challenge the proposed loan from high creditors in the association, claiming that the tool was not considered the rival properly to obtain a loan at lower cost and with less restricted conditions.

Kokran also told the court that he expected the total interest bill in the tool to reach 800 million pounds to 900 million pounds next year, including the costs of the new loan of the “A” category. This proposed loan holds an annual interest rate of 9.75 percent, in addition to more fees for lenders.

He denied that the THMES Water customers bear the additional costs of the new loan, saying that any costs are higher than those allowed by the allowed water regulator by its creditors or new stock investors.

The head of finance confirmed the numbers while interrogating William Day, a lawyer who behaves with the liberal Democratic Deputy Charlie Mainard, who allowed the court to talk about the public interest and the consumer interest. Mainard said in a written submission to the court, that about a third of the Times Water customers’ bills have already gone towards the service debt service.

Mainard wrote that the “best and more just and fair session” will be to enter the Thames River into a special management.

Kokran said that the Times Water believes that “the best interests” of each of its customers and creditors to avoid a special administration, but added that the tool “will not do this at any cost.”