Overview

• Creditors holding roughly £13 billion of Thames Water’s debt offered to inject £3 billion in new equity and £2 billion in fresh borrowing.
• The proposal would write off several billion pounds of existing debt and deliver a complete loss for current shareholders to restore the company’s balance sheet.
• Lenders are requesting a regulatory reset from Ofwat, seeking relief from historic fines and more flexible performance targets for environmental and service standards.
• Ofwat has begun a thorough review of the turnaround plan’s realism and benefits for customers and the environment, with approval anticipated in early July.
• Government officials are monitoring developments closely and warn that temporary nationalisation remains an option if a deal cannot be secured.