Thames Water's lenders are preparing to submit a final offer for the ailing utility, pressuring Prime Minister Andy Burnham to decide on nationalisation. The revised plan includes a larger debt writedown of about 35 per cent, £3.5bn in equity, and £6.55bn in debt. The creditors, forming the London & Valley Water consortium of roughly 100 lenders including Elliott Management and Silver Point Capital, want Ofwat to waive regulatory penalties until 2030 in exchange for a one-off £1bn payment.
Meanwhile, Thames is burning through cash, missing leakage and sewage targets. Creditors have expanded a £3bn super-senior emergency loan by £2.4bn at 9.75 per cent interest. A cross-party group of MPs has demanded the government block the consortium from taking full control.
Burnham previously suggested renationalising Thames but has resisted since becoming prime minister.
Source: Financial Times Companies · Summarized by HeadlinesBriefing