The UK government is preparing contingency plans for the potential collapse of Thames Water, the country's largest water company. FTI Consulting has been appointed to assist with these preparations, including lining up administrators to manage a possible special administration scenario. Thames Water has accumulated around £20 billion in debt, with reports indicating that since 1989, the company has paid out £10.4 billion in dividends and £13.68 billion in interest payments, while receiving little new shareholder investment. The company recently secured liquidity through a £1.5 billion debt drawdown, which is expected to provide stability until mid-December, with a second tranche potentially extending support into 2026. Barclays is actively selling £236 million of Thames Water debt amid ongoing creditor negotiations. The government is considering temporary nationalisation to stabilize the company before seeking a buyer. One potential buyer is CK Infrastructure Holdings (CKI), a Hong Kong-based company owned by billionaire Li Ka-shing’s CK Hutchison Holdings, which already has significant interests in the UK water sector. The prospect of a Chinese firm acquiring Thames Water has raised concerns and debate among stakeholders. Advocacy groups and some MPs are calling for permanent public ownership of Thames Water to prevent further private sector mismanagement and protect customers. The Environment Agency and local groups have also faced criticism for their role in addressing pollution issues linked to the company.