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Consortium pledges £10bn new capital for recapitalisation, with debt write-off and no taxpayer cost.
The London & Valley Water consortium confirms it is in active discussions with regulators on a comprehensive recapitalisation and transformation of Thames Water, with investors ready to provide £10 billion of new capital. All profits would be reinvested in infrastructure until the business is turned around and returned to public markets, with no requirement for taxpayer funding or increases in customer bills. The consortium says it can address issues raised by Defra and Ofwat, and is eager to engage with new ministers under Prime Minister Andy Burnham to present a revised proposal that delivers environmental compliance and cleaner rivers faster. L&VW is willing to grant greater public controls through a new supervisory structure with enhanced local representation and a 'Golden Share' for ministers, while existing shareholders would lose their investment entirely and creditors would write off £9.6 billion of debt. The plan includes a 10-year dividend ban, expansion of the social tariff, and no request for environmental leniency or immunity from enforcement.
Consortium pledges £10bn new capital for recapitalisation, with debt write-off and no taxpayer cost.