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Thames Water rescue consortium says it will discuss government control
London & Valley Water, which holds £17bn of Thames Water’s £21bn debt, said it is preparing for a potential legal fight if a special administration regime is pursued.
London & Valley Water, a consortium of 100 institutional investors pursuing a rescue bid for Thames Water, said it is willing to discuss government involvement while ruling out public ownership. The group, led by corporate troubleshooter Mike McTighe, said it wants to work constructively with any new ministers as Britain prepares for a potential shift in the company’s control.
According to the consortium, it holds £17bn of Thames Water’s £21bn debt and is open to enhanced public control of day to day operations. McTighe said the consortium is keen to meet new ministers to discuss how it can collaborate in the best interests of customers and help rebuild confidence in the company and the wider sector.
The comments come after reports that incoming Prime Minister Andy Burnham could put Thames Water into a special administration regime, a form of temporary public ownership. The proposal described in the report would shift operating costs to taxpayers, and Thames Water creditors have claimed the bill could reach £2bn.
The outlet also reported that Burnham has previously argued for greater public control of Thames Water and suggested this could include nationalisation. The consortium said it is preparing for a potential multi billion pound legal battle alongside the possibility of the special administration route.