Thames Water's Financial Lifeline: A Bold Plan to Avoid Nationalisation
Senior creditors of Thames Water propose a plan to avert nationalisation by writing off £7.5 billion in debt and paying off all outstanding fines. The proposal involves halting dividends and a commitment not to sell Thames Water before March 2030 while aiming to boost the company's financial resilience.
In a bid to prevent nationalisation, senior creditors of Thames Water have unveiled a plan to write off £7.5 billion in debt. This measure aims to stabilize the utility, which serves 16 million customers and has been embroiled in environmental scandals while grappling with debts nearing collapse.
The proposed strategy, spearheaded by institutional investors like Aberdeen Investments and PIMCO, includes halting dividends and refraining from selling the company until March 2030. This approach aims to resolve outstanding fines and provide Thames Water a market-driven recapitalization, avoiding temporary government control.
Ofwat, the water regulator, is reviewing the proposal with urgency to ensure Thames Water's financial and operational turnaround supports customer interests and environmental concerns. The plan, if accepted, requires High Court approval, emphasizing the critical need for viable solutions to Thames Water's fiscal challenges.
(With inputs from agencies.)
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