Thames Water creditors: We're open to talks with Andy Burnham on more ‘public control’
Investors in Thames Water have said they are willing to discuss greater “public control” of the utility amid reports Andy Burnham could temporarily nationalise the struggling company.
Turnaround specialist Mike McTighe, who is working with the largest group of Thames Water’s creditors, said UK and international investors were willing to work with incoming ministers to “rebuild confidence” in the debt-laden firm.
Mr McTighe said: “We are keen to meet new ministers as soon as possible to discuss how we can work together in the best interests of customers, including by enhancing public control of the company’s operations.
“We remain ready and willing to recapitalise Thames Water, return it to investment grade, and begin the long process of turning it around.
“We urgently need Government engagement to begin that process.”
Mr Burnham has previously said he wants to see more public control of key utilities, including water.
Reports have suggested he is preparing to temporarily nationalise the company, which is battling a £20 billion debt pile, by putting it into a special administration regime (SAR).
Last week, the firm’s annual report warned of a “material uncertainty” about its ability to secure enough liquidity to carry it through to a successful rescue plan.
A rescue plan by creditors is seen as the final realistic option to avoid being placed into an SAR after a previous rescue deal with US private equity giant KKR collapsed in May last year.