Creditors Propose Board Shake-up to Rescue Thames Water

A consortium of senior creditors known as London & Valley Water is planning a boardroom shake-up at Thames Water as part of a rescue deal to prevent the utility's nationalisation. The group intends to appoint four new board members—Liz Barber, Dame Bernadette Kelly, Clive Selley, and Mike McTighe—to oversee a 10-year turnaround of the company.

Thames Water currently faces a £20bn debt mountain and may deplete its cash reserves by October. To avoid collapse, the creditors are negotiating with the UK government and the regulator Owat for formal ownership and leniency on future fines. In exchange, the consortium would provide short-term bridge financing and execute a debt restructuring plan.

Prime Minister Andy Burnham faces increasing pressure to renationalise the utility under a special administration regime. Such a move would likely result in significant losses for the creditors. Mike McTighe, a slated board member, has acknowledged that the challenge at the company is huge and stated that the new board would focus on protecting public health and safety if the recapitalisation plan is accepted.