As this Thames Water torture drags on, let's hope that Ofwat is playing hard with the creditors

A good 20 months have passed since the shareholders of Thames Water declared they wouldn't be putting another penny into the "uninvestable" company and would rather take a thumping write-off of their investment.

- Nils Pratley

So surely, you'd think, we must be nearing the endgame in the attempt by the creditors - the people who lent money to Thames to rescue the company via a debt write-down and a recapitalisation with new equity. After all, the 100-odd class A bondholders have been negotiating with Ofwat, the regulator, since June. Indeed, they started work on their proposal six months before that, in case the original preferred bidder, the US private equity group KKR, took fright at the political heat on Thames, which is what happened.

But no, the water torture goes on. "Discussions are taking longer than expected but this is a complex situation and the current phase of the restructuring plan will likely take a number of months to conclude," Thames said within its half-year numbers on Wednesday.

One hopes it means Ofwat, as it awaits execution or reinvention under the government's "reset" of water regulation, is playing hard and tearing chunks out of the creditors’ proposal.