Thames Water's $10 Billion Debt Revival Plan Unveiled
Senior creditors of Thames Water propose a $10 billion debt write-off to prevent nationalization, addressing financial struggles amid pollution fines and looming collapse. The plan involves major debt restructuring and equity commitments by 15 financial institutions, aiming for government alignment to ensure long-term stability and performance improvement.
In a bid to prevent nationalization, senior creditors of Thames Water have revealed a $10 billion debt write-off strategy aimed at stabilizing the troubled utility company. This plan emerges as Thames Water struggles under financial strain and pollution-related fines.
The investor group, consisting of 15 institutions including Aberdeen Investments, Elliott, PIMCO, and Silverpoint Capital, proposes an elaborate debt restructuring. The move is intended to avert the government's special administration regime and promote long-term improvements.
With the water regulator Ofwat assessing the proposal, the consortium, known as London & Valley Water, is keen on swift alignment to address the urgent financial issues. Specific commitments include a minimum 10% equity share for Class A debt, deferring dividend payments, and a promise not to sell the company before 2030.
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