Lenders, led by the taxpayer‑backed National Wealth Fund, NatWest and Lloyds, have seized control of rural fibre operator Gigaclear after trimming its debt by up to 40%. Eleven banks will replace former shareholders InfraCapital, Equitix and Railpen in a deal slated for completion Thursday. The move follows a failed equity injection that left the company with almost £1 bn of debt.

Britain’s “altnet” challengers now face a collective debt of more than £9 bn, a figure highlighted by Enders Analysis. Gigaclear’s woes stem partly from the National Wealth Fund’s £240 mn guarantee, part of a £1.5 bn investment in 2023 that later recorded a £152 mn loss. The fund, formerly the UK Infrastructure Bank, has poured over £1.7 bn into rivals like CityFibre and Quickline.

After the recapitalisation, Gigaclear says its balance sheet is stronger and its business plan fully funded, allowing it to expand coverage to more customers. Chief executive Nathan Rundle noted that the new footing would support network growth. Analysts view the restructuring as a necessary step for the company to survive in a sector under pressure and to protect taxpayer exposure.