STORY: Thames Water suffered a major setback in its fight to avoid nationalization on Tuesday (June 3).
It said U.S. private equity firm KKR had pulled out of a multi-billion pound rescue plan.
Britain's biggest water supplier has been pushed to the edge by its $24.35 billion debt pile.
And was banking on KKR investing billions in new equity to effectively buy the company.
The government has said it is on standby in case Thames Water fails to recapitalise.
And needs to be temporarily nationalized in order to keep services running.
KKR declined to comment.
Thames Water is at the centre of a public backlash against the privatised water sector.
It's been blamed for polluting Britain's rivers and seas while hiking bills.
As well as prioritising dividend payouts over investment in infrastructure.
Public outrage over frequent sewage spills has prompted tough action from regulators.
But Thames Water bosses have said punitive fines are hindering its efforts at a turnaround.
The government wants to reform the sector and has tasked a commission to do so.
KKR's withdrawal comes days after Thames was fined around $166 million for sewage failures.
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