Overview
- The London & Valley Water consortium proposes writing off about £4 billion of debt—roughly a quarter of the total—alongside £3.15 billion in new equity, £2.25 billion in new debt and an extra £1 billion of investment compared with its May offer.
- The package commits to paying existing pollution and regulatory fines, halting dividends while under Ofwat oversight and ruling out any sale before 31 March 2030, with an eventual stock market float envisaged.
- Mike McTighe has been named as the proposed chair, with five directors earmarked to join the board, as creditors outline governance changes to support a turnaround.
- Creditors are seeking a regulatory reset with more realistic performance targets on leaks and pollution and urge swift approval to stabilise finances and avoid a Special Administration Regime.
- Ofwat says it is reviewing the plan, and the government has indicated it prefers a market-based solution rather than nationalisation.