Headlines
Thames Water creditors see a 'short and closing window' to rescue company
Published by Global Banking & Finance Review®
Posted on June 4, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 4, 2025
2 min readLast updated: January 23, 2026
Thames Water's creditors stress an urgent need for a market-led rescue after KKR exits a major funding plan, pushing the company closer to nationalisation.
LONDON (Reuters) -Thames Water's senior creditors said there was a "short and closing window" for a market-led rescue of the water company after U.S. private equity firm KKR pulled out of a multi-billion pound funding plan on Tuesday.
The creditors said on Wednesday they had submitted a long-term plan to fix the root causes of Thames Waters' problems.
The heavily indebted water company, Britain's biggest, moved a step closer to nationalisation on Tuesday when KKR walked away from investing about 4 billion pounds ($5.4 billion) of equity.
The group of senior debt holders said they had a proven track record of stewardship and could deliver "substantial fresh investment" to turn around the company under new leadership.
"The Creditors believe that Thames Water requires an urgent and fundamental reset and there is a very short and closing window in which a market-led solution can succeed," they said in a statement, adding that discussions with the regulator Ofwat and the government would be advanced in the coming weeks.
They are being advised by corporate troubleshooter Mike McTighe, who is a potential candidate for chairman if the proposal succeeds, according to a source close to the creditors.
Thames Water in March agreed to postpone a challenge to the regulator's decision on how much it could increase customers' bills while it explored the potential equity raise. That deferral is set to expire next month.
A spokesperson for Thames Water declined to comment on the creditors' statement. It said on Tuesday, when announcing that KKR had walked away, that it would "progress discussions on the senior creditors' plan with Ofwat and other stakeholders".
($1 = 0.7389 pounds)
(Reporting by Paul Sandle; Editing by Kate Holton)
Thames Water's senior creditors stated there is a 'short and closing window' for a market-led rescue of the company.
KKR pulled out of investing about 4 billion pounds, moving Thames Water closer to nationalisation.
The creditors submitted a long-term plan to address the root causes of Thames Water's financial issues.
Corporate troubleshooter Mike McTighe is advising the creditors and is a potential candidate for chairman if their proposal succeeds.
Thames Water agreed to postpone a challenge to the regulator's decision on increasing customer bills while exploring a potential equity raise.
Explore more articles in the Headlines category
