The company supplying water to millions of Londoners is in deep trouble | CNN Business

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Britain’s biggest water supplier said it needed to raise more cash from investors, as UK media reported the government was preparing contingency plans to rescue the company.

Thames Water provides drinking water and waste water services to 15 million customers in London and the southeast of England. The utility, which counts one of Canada’s largest public pension funds among its top investors, has around £14 billion of debt on its balance sheet. News that it needs more money came just a day after CEO Sarah Bentley resigned with immediate effect after three years in the role.

The Universities Superannuation Scheme, a pension fund for the academic staff of UK universities, owns nearly 20%. Other large investors include the Chinese and Abu Dhabi sovereign wealth funds, as well as British Columbia Investment Management Corporation, which invests on behalf of public sector workers. Has privatization failed? UK water companies have racked up debt of more than £60 billion since being privatized three decades ago, according to Ofwat.

 

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