Thames Water’s creditors propose £10bn rescue package

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The creditors of Thames Water have proposed a £10bn package to rescue the company from nationalisation. This comprises injecting £3.3bn of cash into the company and raising £6.6bn of debt. Lenders, which include American hedge funds, have effectively been in control of Thames Water since other shareholders quit in 2024. They have offered to pay off fines for illegal sewage dumps and breaking dividend payment rules. It could be a last chance at survival for a company which provides water to 15m households but has been close to collapse for years. Thames Water has taken on £17.6bn of debt since it was privatised and is among the worst performing water companies. In 2024, it was responsible for 33 of 75 serious pollution incidents in England and the amount of raw sewage it dumped into rivers rose by 50%.