The board of the UK water regulator Ofwat is currently divided over whether to approve a rescue proposal put forward by the senior creditors of Thames Water. The regulator has yet to reach a consensus on the plan designed to save the country’s largest water supplier.
In a significant development, the creditor group known as London & Valley Water, which includes firms such as Invesco, Elliott Management, and Silver Point Capital, presented a new offer in March. This proposal involves injecting £3.35 billion ($4.54 billion) in new equity alongside up to £6.55 billion in new debt to stabilize Thames Water’s finances.
Thames Water is facing a critical situation that could lead to nationalisation if the regulator fails to approve a deal with the creditors. Meanwhile, Ofwat continues to engage with London & Valley Water, carefully reviewing their plans to determine whether they will improve Thames Water’s operational performance and enhance its financial stability.
Thames Water has not provided an immediate response to requests for comment on the ongoing negotiations.
