Southern Water Sees Time Running Out for Deal With Creditors

UK utility Southern Water Ltd. is running out of time to strike a deal with creditors over a critical equity injection from owner Macquarie Asset Management that would save it from a ratings downgrade.

While negotiations are advanced and the parties are aligned on key terms of an agreement, sticking points remain, according to people familiar with the matter. Crucially, some debt holders want more clarity from Macquarie on how, when and under what conditions the money will come in, the people said, asking not to be identified discussing confidential talks.

The last-minute negotiations underline the risks at play for ...