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Thames Water’s creditors have offered to take a 25 per cent write-off on their debt and set out plans to eventually list the company on the stock market, as they seek approval from industry regulator Ofwat to take control of Britain’s largest water utility.
The senior creditors, who hold the bulk of the company’s almost £20bn in bonds and include US private capital firm Apollo Global Management and the hedge fund Elliott Management, submitted the plans to Ofwat on Wednesday.
The group of creditors also said they would inject £3.15bn in equity and are committed to provide £2.25bn in new debt.
Thames Water, which supplies water and sewage services to 16mn people in and around London, has been battling to avoid renationalisation for more than a year.
The company also faces ageing infrastructure in urgent need of upgrading, while its record of sewage spills has prompted a public outcry and fines from Ofwat.
Thames Water has said that the creditor group’s offer is the only credible one left after private equity group KKR abandoned its bid, in part over fears of political interference in running the company.
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