Lenders to Thames Water have offered to inject £3.35 billion of new equity into the company as part of an accelerated effort to secure a rescue deal, according to a Sky News report. This increased capital injection was included in a revised proposal submitted to industry regulator Ofwat within the last 10 days. Thames Water serves approximately 16 million customers and provides water and wastewater services across London and the Thames Valley. The company has faced criticism over sewage pollution and is grappling with nearly £20 billion of debt.
The offer comes from creditors including Invesco, Elliott Management, and Silver Point Capital, as Thames Water hovers on the brink of temporary nationalisation. The company requires hundreds of millions of pounds in new funding by the end of this month. In exchange for the capital injection, creditors would receive a minimum 10% equity stake in the recapitalised company, Sky News reported earlier in January.
Reuters was unable to independently verify the report. Invesco, Elliott Management, and Silver Point Capital did not immediately respond to a request for comment. A Thames Water spokesperson declined to comment on the Sky News report but stated that the company is “working constructively with stakeholders” to deliver a market-led recapitalisation in the best interests of customers and the environment, remaining hopeful of reaching an agreement.
If a long-term restructuring agreement is not secured, Thames Water is expected to be placed into the government’s special administration regime, effectively a form of temporary nationalisation.
