Hints and tips:
...One issue is that Kemble is reliant on dividends paid by the regulated operating company, which receives the cash from customer bills....
...Thames Water’s lenders have become increasingly nervous after the default by Kemble Water Finance, which has increased the likelihood of writedowns on the utility’s £16bn of debt....
...Kemble then “cascaded” £500mn of this borrowed money down the chain of holding companies that own Thames Water into the regulated utility....
...Kemble relies on dividends from Thames Water to pay interest to its bondholders and lenders....
...Kemble’s other lenders include two Chinese state-owned banks, the Financial Times reported last week....
...Bonds at Kemble subsequently plunged to just 15 per cent of face value....
...Their resistance to rescuing the company by refusing to invest a further £3bn into the business — including £500mn due at the end of April — precipitated Kemble’s default earlier this month....
...The bonds were issued by Kemble Water Finance, which sits above the nearly £15bn of debt at the Thames Water utility companies that should be unaffected by the move....
...Kemble’s debt now trades at 13.5 pence in the pound after the water company’s current shareholders backed away from stumping up a promised £500mn of equity and declared the company “uninvestable”, leading...
...The hedge fund has stayed clear of bonds at Thames Water’s holding company Kemble, however, which sit outside the regulatory ringfence and are trading at less than 15 pence....
...Thames Water and Kemble did not immediately respond to requests for comment. Additional reporting by Robert Smith...
...Before then, £190mn of debt at Kemble is due April 30, which the company has said is unlikely to be repaid without new equity coming in....
...Thames Water and its parent Kemble declined to comment....
...due in April at one of the group’s many subsidiary companies — Kemble Water Finance....
...Additional reporting by Robert Smith...
...The rest are bonds and loans in a series of holding companies under the Kemble umbrella....
...Amid pessimism about the group’s prospects, the price of a 2026 bond sold by Thames Water’s parent company, Kemble Water Holdings, plunged as much as 35 pence to 50p, into distressed territory....
...We stayed at the Playa Grande Beach Club, with interiors by New York designer Celerie Kemble....
...The “Old Price Riots”, as the press dubbed them, ended only when the manager John Kemble dropped the prices....
...Thames Water is owned by parent company Kemble, which in turn is controlled by Australian investment group Macquarie....
...We can commit to – and I know many honourable members have been calling for this – the Swindon to Kemble redoubling scheme....
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