Published by Global Banking & Finance Review®
Posted on April 14, 2026
2 min readLast updated: April 14, 2026
Add as preferred source on GoogleOfwat’s board remains divided over approving a £3.35 bn equity and up to £6.55 bn debt rescue proposal from the London & Valley Water creditor consortium to salvage Thames Water, amid nationalisation risks if consensus isn't reached.
April 14 (Reuters) - 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 Britain's largest water supplier, the report said.
Thames Water, which is at the centre of a sewage scandal in Britain, could be nationalised if regulators fail to agree on 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 Thames Water in March that included 3.35 billion pounds ($4.54 billion) of new equity and up to 6.55 billion pounds of new debt.
An spokesperson for Ofwat 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 remains focused on securing a market-led solution that delivers improvements for customers and the environment as soon as practicable whilst continuing to make progress with our operational and financial turnaround plan," a spokesperson for Thames Water told Reuters.
($1 = 0.7377 pounds)
(Reporting by Unnamalai L, Ankita Bora and Jahanvi Kothari in Bengaluru; Editing by Shailesh Kuber)
The board is split because it has not yet reached a consensus on the terms of the creditor's rescue proposal.
The creditor group includes Invesco, Elliott Management, and Silver Point Capital, operating as London & Valley Water.
The offer includes £3.35 billion of new equity and up to £6.55 billion in new debt for Thames Water.
Thames Water could be nationalised if regulators and creditors fail to agree on a rescue deal.
Yes, Ofwat is continuing discussions and carefully reviewing the proposed rescue plans.
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