Thames Water’s board is split over two competing deals from its lenders aimed at saving the UK’s biggest water supplier from going insolvent.
Two classes of creditors, group A bondholders and group B bondholders, are offering high-interest £3bn rescue packages intended as a liquidity lifeline while the company burns through cash and seeks to restructure its debts.
Thames is labouring under an unsustainable £15bn debt burden after years of paying hefty dividends as well as fines for pollution scandals. Its shareholders, which include the UK academics’ pension fund and international investors from China, Canada and Abu Dhabi, have labelled the company “uninvestible” and refused to put in more money.
That has left Thames heading…
