Overview

• A consortium led by Aberdeen, Elliott Management and BlackRock has proposed a £17 billion debt restructuring for Thames Water to reboot its balance sheet
• The plan would write off several billion pounds of debt and wipe out existing shareholders’ stakes in what financiers call the largest loss on a UK infrastructure asset
• Investors would commit £20.5 billion in fresh capital over five years, including new equity and funding, while freezing customer bills at levels agreed with Ofwat
• Creditors are seeking eased performance and compliance targets in regulation to break a cycle of underinvestment and pollution breaches
• Thames Water serves 16 million customers, carries £19 billion of debt and was fined a record £122.7 million for river pollution, prompting calls for special administration