Overview

• London & Valley Water filed a revised proposal with Ofwat that increases loan write-offs to about £4bn and lifts total new equity to roughly £3.15bn.
• Junior creditors’ approximately £1bn of debt would be written off in full, and the plan commits to covering pollution and regulatory fines.
• The creditors pledge no dividends while under formal Ofwat oversight and no sale of the business before 31 March 2030, with a future stock market listing only after a turnaround.
• The submission follows months of talks since May and is not yet legally binding, with the special administration regime remaining the fallback if regulators reject it.
• Bondholders took control after a High Court-approved restructuring that provided up to £3bn in emergency funding through summer 2026, with backers including Elliott Management and Apollo Global Management, and Mike McTighe named as proposed chair.