Thames Water reported to be nearing £16 billion rescue deal with group of lenders

Britain's largest water utility is reportedly close to a massive recapitalisation plan with creditors. The deal aims to prevent temporary public ownership.

Insights:
Sky News reported that Thames Water is edging closer to a £16 billion rescue deal with its lenders. This proposal, which is currently under discussion, aims to keep the utility serving Britain GBGBout of temporary public ownership and address its ongoing solvency pressures. A group of creditors holding £13 billion of the total £20 billion debt is reportedly aiming to sign an in-principle agreement with the regulator Ofwat and the company by the middle of next month.
Under the proposal being discussed, participating lenders would take a haircut of up to 30% on the Class A debt, which represents an increase from the 25% figure disclosed in an announcement in October. It is reported that more than £13 billion of existing value is expected to be written off when a final deal is eventually put to participating investors. In exchange for the restructuring, creditors would receive a minimum 10% equity stake in the recapitalised company.
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