Latest news with #administration
Times
13 hours ago
- Business
- Times
Thames Water given special administration warning by minister
The government has given the strongest indication yet that it is preparing to put Thames Water into administration. Answering questions in the Commons, Steve Reed the environment secretary, was asked to comment on backbench unease that a consortium plotting a takeover of Thames Water is lobbying Ofwat, the regulator, to ease up on the fines and penalties it is levying against the company for past misdemeanours and ongoing poor performance. In response Reed told MPs: 'Thames Water must meet its statutory and regulatory obligations to their customers and to the environment. It is only right that the company is subject to the same consequences as any other water company.' He continued: 'The company remains financially stable but we've stepped up our preparations and stand ready for all eventualities, as I've said before, including [a] special administration regime if that were to become necessary.' A special administration regime is the option of last resort for the troubled company and would involve the appointment of professional accountants and be likely to wipe out all creditors in an attempt to refinance the business. A consortium of creditors of Thames Water who are already propping up the £19.25 billion in-debt London and Thames Valley supplier, have proposed a £5 billion refinancing over and above £3 billion of bridging loans that are currently keeping the company in business. However, those creditors have made it plain that their proposals can work only if Ofwat is prepared to offer a 'recalibration' of Thames Water's five-year funding settlement and performance targets. As the settlement currently stands, which demands reductions in environmentally-damaging pollution incidents and wasteful mains leakage plus other metrics, Thames could face up to £1 billion of fines and penalties for not hitting the targets in the coming years. The creditors plotting the takeover include major UK institutions such as Aberdeen, Invesco and M&G, large international finance houses such as BlackRock and Apollo, as well as distressed-debt dealers such as Elliott and Silver Point Capital. They have stepped in after the infrastructure investment arm of KKR, the American private equity house, walked away last month from a £4 billion recapitalisation plan. A spokesman for the creditors backing the takeover said: 'Broad regulatory support is needed to unlock a market-led solution for Thames Water that will secure billions of pounds in fresh investment for its ageing network. 'This investor group is committed to working with the government and regulators to agree a pragmatic plan that recognises what Thames Water can realistically deliver and they expect to be held accountable for an ambitious trajectory for the company's return to compliance. 'More than £10 billion would be written-off to get the company back to investment grade, expected to be the largest financial loss on an infrastructure asset in British history.'
Yahoo
20 hours ago
- Politics
- Yahoo
Exclusive-Trump administration disbands group focused on pressuring Russia, sources say
By Gram Slattery WASHINGTON (Reuters) -The Trump administration shelved in recent weeks an inter-agency working group it had set up to formulate strategies for pressuring Russia into speeding up peace talks with Ukraine, according to three U.S. officials. The effort, which was established earlier in the spring, lost steam in May as it became increasingly clear to participants that U.S. President Donald Trump was not interested in adopting a more confrontational stance toward Moscow, said the officials. Despite pledging during his campaign to end the war in Ukraine on the first day of his presidency, Trump in recent months has grown increasingly frustrated that his push has yielded no breakthroughs. He has begun saying that the United States may abandon its efforts to broker peace altogether. In light of that threat, the working group's task seemed increasingly irrelevant, added those officials, who requested anonymity to describe sensitive internal discussions. "It lost steam toward the end because the president wasn't there. Instead of doing more, maybe he wanted to do less," one of the officials said. The death of the working group, the existence of which has not been previously reported, is likely to deepen European allies' concerns over Trump's at-times conciliatory tone toward Russia and his reluctance to express full-throated support for Ukraine ahead of a pivotal summit of NATO allies later this month. On the first day of a meeting of Group of Seven leaders in Canada on Monday, the Republican president said removing Russia from the former Group of Eight over a decade ago had been a mistake. The final blow for the working group came roughly three weeks ago, when most members of the White House National Security Council - including the entire team dealing directly with the Ukraine war - were dismissed as part of a broad purge, according to the three officials. The effort was set up and coordinated by high-ranking NSC staffers, the officials said, though it included participants from the State Department, Treasury Department, the Pentagon and intelligence community. Among those working on the effort was Andrew Peek, the top NSC official for Europe and Russia, who was removed in May. It is unclear precisely who gave the order to discontinue the effort, but the officials suggested the depth of the NSC cuts made its continuation largely untenable. Since the effort's dissolution, Trump's broader peacemaking efforts, which had been a central element of his campaign pitch, have hit a challenging stretch. Despite some successes - such as a U.S.-brokered ceasefire between India and Pakistan - Trump has made little tangible progress in achieving a ceasefire in Gaza and the risk of a full-blown regional war in the Middle East has risen rapidly with the Israel-Iran conflict. The dissolution of the group also follows a March suspension of work by some U.S. national security agencies on a coordinated effort to counter Russian sabotage and disinformation operations, Reuters reported at the time. Nevertheless, Trump could choose to adopt a firmer stance toward Russia regardless of the fate of the working group, which was set up to develop options for the president "if he wanted to get tougher on Russia," one of the officials said. Some Trump allies, including Republican Senator Lindsey Graham, have publicly advocated for an expansive new round of sanctions directed at Russia, citing Moscow's effective rejection of U.S. ceasefire proposals and the Kremlin's continual attacks on civilian targets as proof of Putin's recalcitrance. Trump has said he is considering such measures, but he has also regularly faulted both sides for the ongoing hostilities. The White House did not respond to a request for comment, nor did the Treasury Department, the State Department or the Pentagon. The Ukrainian and Russian embassies in Washington also did not respond to requests for comment. "DEEP FRUSTRATION" The working group was formed in March or April at a time when some close Trump advisers were growing increasingly skeptical of the Kremlin's willingness to reach a deal, while Trump's rhetoric suggested he might be interested in modifying his accommodating stance toward Putin. In an interview with NBC News in late March, he said he was "very angry" and "pissed off" at the Russian leader for raising questions about the legitimacy of Ukrainian President Volodymyr Zelenskiy. NSC spokesman James Hewitt said in an April 1 statement to Reuters that there was a "deep frustration with the Russian government over negotiations." Among the topics discussed within the working group was how the U.S. could incentivize or pressure former Soviet states, as well as other Eastern European and Asian nations, to limit the flow of goods and energy into and out of Russia, said the officials. It is unclear if Trump was aware of the working group's formation or subsequent dissolution. The NSC removals left few high-ranking people on the Russia file, complicating the prospects for any robust inter-agency debate on the topic. While reluctant to discuss the details of the options drawn up by the group due to the sensitive nature of the work, U.S. officials said the group was still brainstorming ideas when it was dissolved. The group's work was unrelated to the Russia sanctions package in the U.S. Senate. Ideas ranged from tailored economic deals designed to peel some countries out of Russia's geopolitical orbit to covert special operations efforts, the officials said. One official mentioned the possibility of creating an incentive structure to push Kazakhstan to more vigorously crack down on sanctions evasion. The country, like other post-Soviet states, has been used by traders to bypass some Western-imposed import restrictions on Russia since Moscow's expanded invasion began in 2022. The Kazakhstani embassy in Washington did not respond to a request for comment.
ABC News
21 hours ago
- Business
- ABC News
Administrators reveal staggering debts of Whyalla Ports with at least $194 million owed
The administrators of Whyalla Ports Pty Ltd have told creditors the company owes at least $194 million, but the true amount is still unclear. Accounting firm William Buck held the first creditors' meeting for the company on Thursday, revealing $25 million was owed to trade creditors with a further $63 million listed as a lease liability. The largest slice is owed to Golding's and its parent company NRW, a key mining contractor, with a secured debt of $106 million. However, administrator Michael Brereton said they were waiting to receive financial records from Whyalla Ports directors. "One of the first things we did on our appointment was to issue a notice to the directors to complete what's called the report on company affairs and property," Mr Brereton said. "That was issued immediately … [and] we have yet to receive those from the directors, so we don't have all the financial information. "[I] think one of the problems they face is that the company operated on the basis that it held the port. "Based on the litigation and the legislation that's been passed, it's become apparent that maybe the company didn't have control of the ports. "So I suspect they're having some problems trying to work through 'What are the financial records of the company?'" In early June, the ports became another casualty in the ongoing fallout since the Whyalla Steelworks was tipped into administration by the state government. The company, Whyalla Ports Pty Ltd, was involved in a Federal Court case launched by Whyalla Steelworks administrators KordaMentha, which wants control of the port so it can sell the steelworks as an integrated asset. Parent company GFG Alliance said when the state government passed new laws to "clarify" that the port was owned by OneSteel, it was left with "no option" but to push the port into administration. KordaMentha has since abandoned the legal action it began. However, a counterclaim from GFG Alliance is still being pursued over the ownership of some assets. During today's meeting, Mr Brereton said a lease agreement between OneSteel and Whyalla Ports was terminated on March 27. "The company was not trading on our appointment," Mr Brereton said. "The company was dispossessed of all its plants and equipment at that time and its right to provide services to customers." One Whyalla creditor, who wished to remain anonymous, previously told the ABC they were owed between $100,000 and $200,000 by Whyalla Ports. They said they feared they may never receive the money due to the dispute over the port's ownership. CEO of Sudel Industries and creditor Kevin Moore said he was owed roughly $20,000 from Whyalla Ports. "Basically, I've already written that money off. I don't think we'll see it." Although the paperwork has not been filed, it is understood that the company will more than likely apply for a deed of company arrangement (DOCA) at its next meeting.
Yahoo
2 days ago
- Politics
- Yahoo
High Court dismisses CFMEU challenge to govt takeover
The CFMEU has failed to overturn the Albanese government's move to force the union's construction division into administration in the High Court. The federal government intervened in August 2024, following claims of bikie and organised crime figures infiltrating the scandal-riddled union, in addition to other serious criminal activity. Controversial leader John Setka claimed the allegations against the union were false, but said he would step down to stop the intense media coverage. Former CFMEU officials challenged the government's legislation that removed the union's leadership and placed it under the control of administrator Mark Irving KC. The plaintiffs, sacked CFMEU officials Michael Ravbar and William Lowth, argued the law was invalid on four grounds, including that it breached their implied freedom of political communication. The full bench of the High Court found all four arguments were unfounded. Victoria Police last September said Setka wouldn't face criminal charges over visits to government work sites, after it looked into 20 allegations of "potential criminal activity". Criminal infiltration and corruption of the construction industry was revealed in Mr Irving's first report as remaining "an area in which much work still needs to be done". Previous workplace relations minister Murray Watt credited Mr Irving and his team for uncovering the "unacceptable conduct". He later referred further allegations, aired by 60 Minutes, to police for investigation. The government labelled vision of a woman being bashed by a bikie-linked health and safety representative as "horrifying". CFMEU national secretary Zach Smith told staff in May he would step away from his role, but would continue to lead the Victorian branch. A damning interim report by lawyer Geoffrey Watson SC said "lawlessness" in the union's construction arm was widespread. Further investigations to identify instances when Victorian branch officials had engaged in or been subject to threatening, violent or abusive conduct were among the seven recommendations he made. All were accepted by the administrator. The government's legislation allows the CFMEU to remain in administration for up to five years and officials that frustrate or obstruct the process face hefty penalties. Industrial Relations Minister Amanda Rishworth said the government would not tolerate criminal behaviour, corruption or violence in the construction industry. "We need to focus on shifting the culture in the construction industry and ensure the bad actors we have seen infiltrating this sector are kept out," she said in a statement. "Construction workers deserve a union free from criminality, corruption and violence. "The administrator and his team can now move forward with confidence and continue their essential work in cleaning up the Construction and General Division of the CFMEU." Master Builders Australia chief executive Denita Wawn said the ruling gave the construction industry and the administrator the certainty they needed to clean up the union.
TimesLIVE
3 days ago
- TimesLIVE
Former prosecutor in court on corruption and money laundering charges
Siphokazi Magangana, a former district court prosecutor, and Yandisa Yolanda Jam Jam appeared in the Roodepoort magistrate's court on Tuesday to face charges of corruption and money laundering. National Prosecuting Authority (NPA) spokesperson Phindi Mjonondwane said the charges related to allegations of soliciting money from unsuspecting and vulnerable members of the public desperate for employment. Magangana, previously stationed in the Johannesburg magistrate's court, allegedly duped three people in August 2022 into paying R10,000 each into the bank account belonging to Jam Jam in exchange for securing permanent employment as prosecutors without following due process of being subjected to interviews. 'When this promise was not fulfilled, the three complained in May 2023 to the office for ethics and accountability of the NPA for investigation.' In December 2023, that office recommended the case be referred to the labour relations unit of the NPA for disciplinary action and Magangana be charged with corruption and fraud. Both accused remain in custody and will return to court on Friday for a possible bail hearing. 'The public is warned not to fall prey to false promises as legitimate NPA hiring processes require no payment of any kind,' Mjonondwane said. As a public institution, the NPA followed official and transparent recruitment procedures to fill vacancies which are publicised on the NPA and the department of public service and administration websites, and the NPA social media platforms, Mjonondwane said.
