Overview

• Thames Water carries almost £20 billion in debt and faces more than £1 billion in potential environmental penalties.
• Creditors have proposed a £5 billion rescue plan with £3 billion in cash and £2 billion of new loans in return for immunity from future fines.
• Ofwat has rejected demands to waive forthcoming penalties, insisting on operational improvements and stronger financial resilience.
• The creditor consortium is preparing a second, sweetened bid with additional cash and deeper debt write-offs to win regulatory approval.
• Li Ka-shing’s CK Infrastructure has demanded to reenter the auction, and investors are urging Prime Minister Keir Starmer to resolve the impasse.