Published by Global Banking and Finance Review
Posted on September 1, 2025
2 min readLast updated: January 22, 2026
Thames Water's creditors propose a £1.25 billion package to avoid state intervention, seeking Ofwat's approval for the rescue plan.
(Reuters) -Thames Water's largest group of creditors is preparing to offer an additional 1.25 billion pound package of new equity and debt write-offs in an effort to persuade regulator Ofwat and the UK government to pursue a rescue deal with them, Sky News reported on Monday, citing people close to the process.
The numbers were still subject to being finalised as part of a comprehensive plan to be submitted to Ofwat, the report added.
Reuters could not immediately verify the report. Thames Water, Ofwat and Silver Point Capital did not immediately respond to Reuters' request for comments. Elliott Management could not immediately be reached.
Britain's biggest water company with 16 million customers has been battling for survival since last year, with the government on standby to put it into its special administration regime (SAR) should it fail to agree a deal.
Senior creditors, including hedge funds Elliott and Silver Point Capital, are trying to convince regulator Ofwat that their plan is the only way to prevent a state rescue.
Last week Thames Water secured a deal with Ofwat by which almost 100 million pounds of what Thames Water owes could be delayed until 2030.
($1 = 0.7402 pounds)
(Reporting by Rhea Rose Abraham in BengaluruEditing by Tomasz Janowski; Editing by Sandra Maler)
Equity refers to the ownership interest in a company, represented by shares. It signifies the value of an owner's stake in the business after all liabilities have been deducted.
Debt instruments are financial assets that represent a loan made by an investor to a borrower. They include bonds, notes, and debentures, and typically involve regular interest payments.
Regulatory approval is the process by which a company obtains permission from a governing body to proceed with a business action, such as mergers, acquisitions, or new product launches.
A financial community consists of individuals and organizations involved in the financial services sector, including banks, investors, regulators, and other stakeholders who interact in financial markets.
A rescue deal is an agreement made to save a financially troubled company from bankruptcy, often involving restructuring debts, providing new capital, or negotiating with creditors.
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