Thames Water spent £67.6 million in legal fees to secure its £3 billion emergency bailout package.
The figure was disclosed by Thames Water's CEO in response to a letter from MP Alistair Carmichael.
Thames Water has racked up £67.6 million in legal fees relating to its £3 billion emergency creditor bailout, a letter sent by the utility's CEO Chris Weston has revealed.
The information emerged after Alistair Carmichael MP - chair of the Environment, Food and Rural Affairs select committee (EFRA) - queried the company’s spending.
The legal fees, first reported by The Lawyer, include those costs incurred by lawyers acting for the utility’s creditors which the company was liable to cover, according to the letter.
City firms line up
Linklaters has been advising Thames Water on its restructuring efforts, with a host of other City firms also involved. Quinn Emanuel advised the company's junior "Class B" creditors, who opposed the loan. Freshfields, Akin and A&O Shearman have also been involved.
The £3 billion facility was ultimately approved in March after the Court of Appeal dismissed an appeal by junior creditors who opposed the bailout package.
The latest figures come after Thames Water's CFO told the High Court in February that it was spending around £15 million a month on legal fees and other advisers.
Struggling Thames Water
The water company’s supersize legal bill stems from its ongoing restructuring efforts. Thames Water has argued that the £3 billion loan, which carries a 9.75% interest rate, was necessary to avoid being placed into special administration.
Earlier in June, US private equity giant KKR pulled out of a deal to pour fresh equity capital into the company, while on Tuesday this week (10 June) a group of senior creditors proposed a further £5 billion emergency funding plan to Ofwat, the water regulator, to keep the company afloat.
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