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Competing lenders' rescue deals split Thames board

The Guardian

|

November 11, 2024

Thames Water's board is split over two competing deals from its lenders aimed at saving Britain's biggest water supplier from going insolvent.

- Anna Isaac

Competing lenders' rescue deals split Thames board

Two classes of creditors, group A bondholders and group B bondholders, are offering high-interest £3bn rescue packages intended as a liquidity lifeline as the company burns through cash while seeking to restructure its debts.

Thames is labouring under an unsustainable £15bn debt after years of paying hefty dividends as well as fines for pollution infractions. Its shareholders, which include the UK academics' pension fund and international investors from China, Canada and Abu Dhabi, have labelled the company "uninvestible" and refused to put in more money.

That has left Thames heading for a restructuring expected to wipe out shareholders and allow its lenders to seize the company - or force it into temporary state ownership.

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