Thames Water lenders unveil £10bn rescue to avert collapse
Thames Water lenders unveil £10bn rescue to avert collapse
Lenders propose a £10bn rescue for Thames Water, injecting cash and wiping fines to prevent government takeover, with bills stabilising through 2030 pending Ofwat approval.
Lenders have floated a £10bn rescue plan for Thames Water, aimed at stabilising the troubled utility and preventing a government-handled administration, effectively a temporary nationalisation. The proposal would see about £3.35bn of new equity and up to £6.65bn of new debt, with roughly 30% of existing debts to senior creditors wiped out in exchange for the company not falling into administration. The plan also includes paying off hundreds of millions of pounds in fines for leaks and pollution and setting aside upfront funds to cover anticipated underperformance against Ofwat targets. If approved by Ofwat and the company's board, bills for Thames Water’s 16 million customers in southeast England would be kept at current levels through 2030 rather than rising further.
