Thames Water nears sixteen billion pound rescue deal with lenders to avoid state takeover

Sky News reported that Thames Water is edging closer to a 16 billion-pound rescue deal with its lenders that would keep the utility out of temporary public ownership if implemented. The proposed recapitalisation package follows months of uncertainty for the largest water supplier in GB GB, which serves 16 million customers.

A group of creditors holding 13 billion pounds of the total 20 billion pounds of debt reported at Thames Water is aiming to sign an in-principle agreement with the company and the regulator, Ofwat, by the middle of next month. This lender-led investor group, known as London & Valley Water, comprises 15 institutions including abrdn plc ABDN.L, Elliott Management, PIMCO, and Silver Point Capital. These members have reportedly pledged to retain their ownership in the struggling utility until 2030 as part of the rescue plan.