Thames Water and a group of lenders to its parent company have drafted in lawyers amid a brewing fallout over the troubled supplier’s future. Both Freshfields Bruckhaus Deringer and Linklaters have been instructed by Kemble lenders and Thames Water respectively, as a potential restructuring battle looms. The magic circle duo are among a raft of City advisers working on the potential fallout from Thames Water, which is battling to stave off a special administration regime that could spark huge losses for creditors. Sir Adrian Montague, chairman of Thames Water, began his career at Linklaters and was formerly a partner at the law firm. Lenders to both Thames and Kemble are facing a wave of uncertainty over the supplier’s future, as it emerged last week that some creditors could suffer losses up to 40pc if the company is nationalised. Concerns over Thames Water’s finances have prompted various groups to enlist advisers ahead of a prospective legal battle, with EY separately advising Kemble lenders on financing negotiations. The Telegraph reported last month that a syndicate of banks behind a £190m loan to Kemble includes the Bank of China and the Infrastructure and Commercial Bank of China. Kemble is meant to repay that...