(Reuters) -Britain's Thames Water may be required to restate its financial accounts for the year ended March 2024, the Financial Times reported on Friday, marking another potential setback for the
Thames Water Faces Potential Requirement to Restate Financial Accounts
(Reuters) -Britain's Thames Water may be required to restate its financial accounts for the year ended March 2024, the Financial Times reported on Friday, marking another potential setback for the struggling utility as it seeks to avert nationalisation.
Thames Water is trying to understand the consequences of having to restate key figures in its accounts published last year, the report added, citing documents seen by the newspaper.
There was concern within Thames Water that any amendment to the accounts could prompt one of its senior lenders to allege that a breach of debt terms had occurred, the report said.
The Financial Reporting Council, the UK's accounting watchdog, was aware of the issue, it added, citing people familiar with the situation.
"We follow all UK-adopted International Accounting Standards and take our regulatory accounting responsibilities seriously," a Thames Water spokesperson said in an emailed statement to Reuters in response to a request for comment.
U.S. private equity firm KKR earlier this month walked away from a plan to inject 4 billion pounds ($5.39 billion) of equity in the embattled company, leaving its fate in the hands of senior creditors now negotiating a rescue deal with water regulator Ofwat.
($1 = 0.7426 pounds)
(Reporting by Prerna Bedi in Bengaluru; Editing by Mohammed Safi Shamsi and Jan Harvey)
