£4bn blow for Thames Water

US BIDDER PULLS OUT OF RESCUE DEAL

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THE future of Thames Water is in doubt after US private equity group KKR pulled the plug on a £4billion rescue deal.

The UK's biggest water supplier with 16 million customers revealed KKR, its preferred bidder to keep it afloat, was now not in a “position to proceed” with its funding lifeline.

Thames, which has a £19bn debt mountain, said the decision was “disappointing” but is now beginning talks with “certain senior creditors” on an alternative financing plan.