(Reuters) -Hong Kong’s CK Infrastructure Holdings (CKI) has emerged as a leading contender to take over Thames Water and could assume control within weeks if Britain’s largest water utility is placed into special administration, The Times reported on Tuesday.
Reuters could not immediately confirm the report.
CKI has indicated it would be prepared to operate under tougher penalties for environmental breaches, a regime that Thames Water’s creditors say is financially unviable, the report said.
Thames Water did not respond immediately to a Reuters request for comment outside regular business hours, while CKI could not be immediately reached for comment.
Earlier on Tuesday, Reuters reported that Britain had appointed FTI Consulting to advise on contingency plans for heavily indebted and loss-making Thames Water to be placed into a special administration regime.
Thames Water is seeking to avoid nationalisation by securing 5 billion pounds ($6.75 billion) of financing from senior bondholders. In July, the company said it had enough cash to operate for 12 months but needs a reset of regulations for any deal to proceed.
($1 = 0.7409 pounds)
(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Tasim Zahid)
