Thames Water should be in administration, MP says

Lib Dem Charlie Maynard said Thames Water "should be in bankruptcy"

An MP has called for Thames Water to be put into administration after a US firm pulled out of a deal to buy the struggling utilities company.

Lib Dem Charlie Maynard, who represents Witney in Oxfordshire, said the government had a "big problem" after private equity giant KKR withdrew from a £4bn deal.

Maynard had previously argued against a £3bn rescue deal for Thames Water, but an appeal against it was dismissed in March.

Thames Water has called news of the failed bid "disappointing" but said it would proceed to work with other potential investors.

When Thames was privatised in 1989, it had no debt - but it now owes about £19bn

Speaking to BBC Radio Oxford, Maynard said the government would now be "scrambling to try and fix" the situation.

He renewed his calls from earlier in the year that the company should be put into government-supervised administration.

"They should be in bankruptcy, because you can't deal with this enormous amount of debt... you've got to cut it down into something sustainable."

He added: "The government is just doing anything it can to not do the fundamental thing that will actually fix it."

Maynard said he was considering taking his case for putting the company into special administration to the Supreme Court.

A government spokesperson said: "The company remains stable and the government is closely monitoring the situation.

"It would be inappropriate to comment in detail on the financial matters of a private company."

The government has previously said it is ready to take over Thames Water in the event that it cannot continue to operate.

Thames Water has been contacted for comment.