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It is said that the American industrial Jaul Getty has noticed that “if you owe a bank 100 dollars, this is your problem. If you are a $ 100 million debtor, this is the bank’s problem.” Although themes Water may soon fail to some of its debts of 19 billion pounds, it remains clear that the problem of the utility tool.

The Times Water has a lot of these. It serves nearly a quarter of the British population and has 32,000 km of electrical current and 109,000 km of sewage but in a state of chaos, after 36 years of privatization. The sewers leak, the bills rise, and the creditors are trying to arrange an amazingly costly restructuring while the company is fighting its investment organizer.

The judge also wrote last month in a case that puts a group of bond holders against another, the Times Water and invoices’ customers (including me) “will feel terrifying” at a cost of 800 million pounds to the planned rescue. There is no ugly creditor hair enough to make us feel better about the inefficiency and exploitation that led to this pass.

But we are where we are, though, there are few alternatives to the company to continue operating and restore financial stability.

One is that the government interferes and takes it. The second is that bond holders are restructuring and agreeing to new owners. They may even become the owners of themselves, by swaping debt in exchange for property rights and fresh investment.

The third method is to appoint a private official to operate the Thames water and sort it in one way or another. This is supported by observers, including Charlie Mainard, the liberal Democratic deputy in Whitney, and his two. attractiveness In terms of clarity and independence from creditors. But the official was unable to print money: the company will still need to be re -finannap.

The question may be soon. While Mr. Justice Leach consent The restructuring plan proposed by senior creditors in the tool, can be transferred by the Court of Appeal later this month. If so, it is possible that the company will fall into the administration after finally depleted the money. You may then need an emergency loan from the government to support it.

the government He wants To secure the Times water and take over the burden of ownership, some representatives of the Labor Party prefer. It can reduce some high costs for re -financing led by creditors from the private sector, but it will also transfer the financial risks of taxpayers. Other pressure on the general budget, including defense, has already priority.

Fortunately for the government, there are still some potential offers providers, although all financial distress and general scandal. Both CK Infrastructure in Hong Kong and KKR Special Stock Group Initial bids To take over the tool if its debts can be restructured. Hope is seven eternity in the financial markets and there is a price for everything.

This is the “market solution” that most of the Times Water debt is preferred, a motor crew of infrastructure investors and hedge funds. If it is possible to polish about 6 billion pounds of its debts, the ship may sail under new property and investment science. The judge agreed to allow them to try, after making sure that they would bear the costs of financing.

Justice dictates that creditors should suffer to show that lending returns come with risks. The judge noticed the temptation to prevent restructuring, as the number of £ 1.5 billion in new loans “Go to a circle and return to pockets” of creditors. The fact that the company’s management supports it is not here or there.

But there is also justice in the fact that the owners of the Times Water, including Chinese wealth boxes and Abu Dhabi, and pension funds in the United Kingdom and Canadian, possible To be wiped. There is some recovery, too, in the inevitability of the creditor’s haircut, even those that can leave them in control. The official will have to cut a kind of dealing with them.

Getty’s saying failed in Thames Water because, in order to become the problem of lenders, the borrower must be able to move away. I must run taps or wipe a toilet to show why this is not done with a general benefit. Not only does it need to work without interruption, but it also raises new debts in the future: the UK water sector plans to invest 108 billion pounds sterling In the next five years.

Margaret Thatcher should have thought about this when the sector was privatized in 1989, but it took decades until the full effects became clear. Less than return to public ownership, there is no choice for the Times water but to maintain borrowing and continuing.

john.gapper@ft.com