Summary
Lenders of Thames Water have proposed a new rescue plan to prevent the company's collapse without using taxpayer money. This plan involves writing off some of the company's debt and injecting funds to improve services and stability. Thames Water serves a significant part of the UK and has faced criticism for environmental breaches.
Key Facts
- Thames Water's lenders have submitted a plan to keep the company from collapsing.
- The plan includes writing off about one-third of Thames Water's £20 billion debt.
- Investors, forming a consortium called London & Valley Water, propose investing £5.4 billion.
- The plan aims to stabilize the company without taxpayer or government support.
- Thames Water serves about 25% of the UK population, mainly in London and southern England.
- The company has been fined £122.7 million for sewage spills and rule breaches.
- No dividends will be paid to shareholders during the turnaround, and new shareholders will not sell before March 2030.
- The company faced setbacks after a failed deal with a US equity firm, but is focusing on improving reliability and reducing pollution.
