UK’s Ofwat board split over approval for Thames Water rescue deal
The board of UK water regulator Ofwat is split over whether to approve a rescue deal offered by the creditors of Thames Water, Bloomberg News reported on Tuesday, citing a person familiar with the matter.
The water regulator’s board has so far failed to reach a consensus on the deal floated by senior creditors to save UK’s largest water supplier, the report said.
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Thames Water, which is at the centre of a , could be nationalised if regulators fail to agree a deal with the group of senior creditors, which includes Invesco, Elliott Management and Silver Point Capital.
The creditor group, called London & Valley Water, made a new offer to rescue water supply company in March, which included 3.35 billion pounds ($4.54 billion) of new equity and up to 6.55 billion pounds of new debt.
An Ofwat spokesperson told Reuters it is continuing to engage with London & Valley Water and reviewing their plans carefully to assess whether they deliver a turnaround in Thames Water’s operational performance and strengthen its financial resilience.
Thames Water did not immediately respond to a Reuters request for comment.
