Thames Water Creditors Submit Improved Rescue Bid

Thames Water, Britain's largest water supplier serving about 16 million customers in London and the Thames Valley, confirmed on Monday that creditors have submitted an improved rescue proposal aimed at averting the company's potential collapse under a nearly 20 billion pound debt burden. The bid, led by the consortium London Valley Water and including major investors such as Elliott Management, Silver Point Capital, Aberdeen, Invesco and PIMCO, offers to inject 3.35 billion pounds in new equity and up to 6.55 billion pounds in new debt.

The proposal represents an upgrade from an earlier offer made in October by the same group of Thames Water's primary creditors, who hold the majority of the company's bonds. Under the current plan, creditors would accept a write-off of up to 30 percent of the existing debt to help shrink the overall load. In return, the consortium would receive at least a 10 percent equity stake in the recapitalized firm. The deal also includes restrictions on selling a significant portion of the new equity until 2030 and prohibits dividend payments to shareholders until April 2035, except if the company lists on a stock exchange beforehand.