Overview
- Environment Secretary Emma Reynolds wrote to regulator Ofwat on Tuesday to say the creditors’ proposal does not protect customers or the environment and urged further scrutiny.
- Creditors led by London & Valley Water offered about £10 billion made up of £3.35 billion of equity and up to £6.55 billion of new debt in exchange for roughly £9.4 billion of old debt being written off.
- Reporting of the deal’s terms shows Thames Water would face roughly £749 million in restructuring fees, legal costs and accrued interest if the plan goes ahead.
- Ofwat must run a three‑month public consultation and secure High Court approval before any deal can proceed, and if the plan is rejected the company could enter a special administration regime to keep services running.
- Thames Water carries nearly £20 billion of debt, has faced record pollution fines and has only months of cash runway, making the choice between a creditor rescue and temporary public control a test of the government’s wider approach to water sector reform.