Thames Water has confirmed an improved rescue bid from its creditors, with a consortium called London & Valley Water (L&VW) proposing to inject £3.35 billion of new equity and up to £6.55 billion in new debt. The bid, first reported over the weekend, marks an increase from an offer made in October last year.
The troubled water supplier, which serves around 16 million customers, said the proposal remains under review by the company, Ofwat, and other regulators. It cautioned that there is no certainty the bid will be accepted or finalised in its current form, and that no decisions have been made by the board or regulators.
Thames Water is seeking to avoid temporary nationalisation after being burdened with nearly £20 billion of debt. A previous rescue deal with US private equity giant KKR collapsed in May, and administrators have been lined up in case the current bid fails.
The L&VW proposal includes commitments from creditors not to sell a significant portion of their equity investment through to 2030, and prevents Thames Water from paying dividends to shareholders before April 2035, unless it becomes a listed company. Creditors would also accept up to 30% of the company's debt being written off.
An Ofwat spokesperson said the regulator is reviewing the plans carefully to assess whether they deliver operational improvements and strengthen financial resilience. A spokesman for L&VW said the offer is the fastest and most reliable route to stabilising Thames Water without government funding or cost to taxpayers.
