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Thames Water creditors propose new board amid £10bn rescue bid
The creditor consortium behind the plan holds £17bn of Thames Water’s £21bn debt, and says the leadership changes would support a recapitalisation agreed by government.
Thames Water creditors seeking a £10bn rescue deal have proposed an overhaul of the utility’s board in an effort to fend off temporary nationalisation being considered by UK Mayor Andy Burnham, according to the Guardian Business. The lenders said they would appoint Liz Barber, the former chief executive of Yorkshire Water, and Clive Selley, the former chief executive of Openreach, as directors if they are allowed to take formal control.
The creditor consortium, London & Valley Water (L&VW), is described as holding £17bn of Thames Water’s £21bn debt. It has also lined up Dame Bernadette Kelly, the former permanent secretary of the Department for Transport, while Mike McTighe, a corporate troubleshooter leading Thames’s overhaul, would become the new chair if the rescue is approved by the government.
The appointments are intended to reassure the government that any commercial rescue would come with a leadership shift as Burnham’s team assesses whether taking Thames Water back into public ownership is an option. McTighe said the challenge at Thames Water is huge, and that if the recapitalisation plan is accepted, the new board would work with the executive team to transform the business and refocus culture on customers and local communities.
We Own It, a public ownership campaign group, criticized the creditors’ announcement. Cat Hobbs said the proposal is a “cosy stitch-up” with no regard for the interests of the people who rely on Thames Water, characterizing it as a reshuffling rather than a substantive change.