Thu, 02 Oct 2025

Thu, 02 Oct 2025 Thames Water lenders submit rescue plan to stave off collapse

London & Valley Water, a consortium of investors, plans to write off some of the company's huge debts.

* London & Valley Water, a consortium of financial institutions and investors, has submitted a new rescue plan to prevent Thames Water's collapse.
* The plan includes writing off around 1/3 of Thames Water's £20bn debt pile and investing an initial £5.4bn to stabilise its finances.
* The plan aims to rebuild the company without requiring taxpayer funding or government support.
* Investors have set "stretching but achievable" performance targets for the company, including reducing pollution and improving customer satisfaction.
* A £122.7m fine was imposed on Thames Water in May for breaching rules on sewage spills and shareholder payouts.
* The plan includes paying off outstanding fines and no dividends will be paid to shareholders during the turnaround period.
* London & Valley Water aims to reach an agreement with Thames Water and regulator Ofwat by autumn this year.
* Mike McTighe, proposed future chair of Thames Water, said that under a new board, there would be a focus on reducing pollution and rebuilding public trust.
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