<\/p>\n
\n Britain\u2019s biggest water supplier, which has around 16 million customers, said bidding consortium London & Valley Water (L&VW) has put forward plans to inject \u00a33.35 billion of new equity and up to \u00a36.55 billion in new debt as it looks to secure backing for its deal.\n<\/p>\n
\n The planned bid \u2013 which was first reported over the weekend \u2013 marks an increase from the offer lodged in October last year by the consortium of Thames Water\u2019s main creditors, including institutional investors such as Aberdeen, Elliott Management and Silverpoint Capital.\n<\/p>\n
\n Troubled supplier Thames Water has said it remains locked in talks over its proposed rescue deal\n<\/p>\n
\n Thames Water said the proposal \u201cremains subject to ongoing review by the company, Ofwat and other regulators, and subject to discussion with the company\u2019s financial stakeholders\u201d.\n<\/p>\n
\n A spokesman for the utility added: \u201cAs engagement remains ongoing, there is no certainty that the L&VW Proposal will be accepted or that it will be finalised in its current form.\n<\/p>\n
\n \u201cAt this stage, the company\u2019s board, Ofwat, other regulators and relevant investment committees have made no decision to accept and take forward the L&VW proposal to implementation.\u201d\n<\/p>\n
\n Thames Water is hoping to secure the deal to stave off temporary nationalisation after being left on the brink of collapse by nearly \u00a320 billion of debt.\n<\/p>\n
\n A rescue bid by Thames Water’s creditors is seen as the final realistic option on the table to avoid being placed into the Government\u2019s special administration regime after a previous rescue deal with US private equity giant KKR collapsed in May.\n<\/p>\n
\n READ MORE: Restaurant ‘temporarily closed’ after spring rolls land it in trouble\n<\/p>\n
\n Administrators have already been lined up to step in if needed.\n<\/p>\n
\n As well as an equity and debt injection, the bid proposal includes commitments from the creditors not to sell a significant proportion ?of ?their equity investment over the regulatory cycle through to 2030, and also prevents Thames ?Water from ?paying dividends to shareholders before April 2035.\n<\/p>\n
\n It could only start to pay dividends before this date if it becomes a listed company, it said.\n<\/p>\n
\n The revised offer would also see the creditors accept up to 30 per cent of the company\u2019s debt load being written off to help reduce the water firm\u2019s vast debt mountain.\n<\/p>\n
\n Its creditors are the bondholders who now effectively own Thames Water after the High Court approved a financial restructuring earlier this year through a loan of up to \u00a33 billion to ensure it can keep running until the summer of 2026.\n<\/p>\n
\n An Ofwat spokesperson said: \u201cWe continue to engage with London & Valley Water and are reviewing their plans carefully to assess whether they deliver a turnaround in the company\u2019s operational performance and strengthen its financial resilience to the benefit of customers and the environment.\u201d\n<\/p>\n
\n A spokesman for L&VW said it believes its proposed offer \u201cis the fastest and most reliable route to stabilising and fixing Thames Water\u2019s complex problems in the best interests of employees, customers, the environment and local communities, without any government funding or cost to taxpayers\u201d.\n<\/p>\n
#Thames #Water #creditors #pledge #3.4bn #improved #rescue #bid<\/p>\n","protected":false},"excerpt":{"rendered":"
Britain\u2019s biggest water supplier, which has around 16 million customers, said bidding consortium London & Valley Water (L&VW) has put forward plans to inject \u00a33.35 billion of new equity and… <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-752","post","type-post","status-publish","format-standard","hentry","category-finance-news"],"_links":{"self":[{"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/posts\/752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock789.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=752"}],"version-history":[{"count":0,"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/posts\/752\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock789.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock789.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock789.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}