Thames Water creditors accused of ‘shuffling deckchairs’ with plan for new board
Summary
A group of creditors holding most of Thames Water's debt proposed replacing the company’s board members to avoid temporary nationalisation by the government. The creditors plan to bring in experienced executives to lead a £10 billion rescue plan, but critics say this move is just a small change and does not address the company’s larger problems.Key Facts
- London & Valley Water (L&VW), a group of 100 investors, holds £17 billion of Thames Water’s £21 billion debt.
- L&VW proposes appointing Liz Barber, Clive Selley, and Dame Bernadette Kelly to Thames Water’s board.
- Mike McTighe, chair of Openreach, would become the new chair of Thames Water if the rescue plan is approved.
- The rescue plan aims to stop temporary nationalisation suggested by Andy Burnham, who supports greater public control.
- A temporary nationalisation could transfer £2 billion in costs to taxpayers.
- Critics say the proposed board changes are superficial and do not solve Thames Water’s core problems.
- The creditors have hired law firms to prepare for possible nationalisation and legal challenges.
- Government and regulator concerns have created doubts about the creditors’ rescue deal.
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