{"id":18996,"date":"2023-07-01T01:05:23","date_gmt":"2023-07-01T08:05:23","guid":{"rendered":"https:\/\/essential.construction\/news\/super-sewer-contractors-safe-from-thames-water-crisis\/"},"modified":"2023-07-01T01:05:27","modified_gmt":"2023-07-01T08:05:27","slug":"super-sewer-contractors-safe-from-thames-water-crisis","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/super-sewer-contractors-safe-from-thames-water-crisis\/","title":{"rendered":"Super sewer contractors safe from Thames Water crisis"},"content":{"rendered":"

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The company told the Enquirer<\/em> that the massive infrastructure project will not be hit by doubts over its financial future.<\/p>\n

A debt mountain of \u00a314bn has left Thames Water on the brink of possible administration as it scrambles for cash from investors.<\/p>\n

Some of the industry\u2019s biggest names including Ferrovial, Laing O\u2019Rourke, BAM Nuttall,Morgan Sindall, Balfour Beatty,Costain, Vinci and Bachy Soletanche are working on the super sewer project.<\/p>\n

Thames Water former chief executive Sarah Bentley left suddenly this week as the firm fights for its future amid restructuring plans.<\/p>\n

One source close to the talks said: \u201cObviously it\u2019s a major crisis but whatever happens the firms working on major infrastructure projects will be looked after otherwise no-one will work for whoever owns Thames Water in the future again.\u201d<\/p>\n

Peter Kubik, Partner in the Turnaround and Recovery team at UHY Hacker Young, the national accountancy group said: \u201cThe uncertainty over Thames Water is a real concern to its contractors and other suppliers. In any insolvency procedure they risk taking a very substantial haircut. If it was a normal insolvency process, as opposed to a Government backed rescue, then a trade creditor would normally get just pennies in the pound on what they are owed.<\/p>\n

\u201cContractors to Thames Water will down tools unless they can get guarantees that they will be paid for the new work they do. If that happens then there is a risk that essential work on Thames Water\u2019s infrastructure, such as repairs, doesn\u2019t get done.<\/p>\n

\u201cSuppliers to other heavily indebted water companies like Southern Water, SES Water and Yorkshire Water are going to have similar concerns.<\/p>\n

\u201cIt is hoped that trade creditors and employees will be paid in full if Thames Water goes into special a special administration but that is by no means guaranteed. We would be extremely surprised if the Government were not to protect the credit balances that customers have with Thames Water.\u201d<\/p>\n

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