Thames Water Creditors Tap Former Labour Minister to Lead Rescue Bid
Thames Water creditors appoint Lord John Hutton as chair-designate in a strategic move to secure a rescue deal and prevent government nationalization.
POLICY WIRE — London, United Kingdom — A consortium of creditors backing Thames Water has recruited a former senior Labour minister to spearhead efforts to finalize a rescue package and overcome government resistance.
The group, known as the London & Valley Water consortium, announced that Lord John Hutton, a former business secretary, has been selected as the independent chair-designate. This appointment is contingent upon the successful approval of a rescue plan intended to keep the utility giant out of state control.
Creditors are currently finalizing a revised proposal that features more significant debt writedowns alongside fresh equity injections. These measures are designed to stabilize the company and avert the prospect of the government assuming temporary ownership.
On Monday, the senior creditors also unveiled an initial slate of proposed directors tasked with managing a ten-year transformation of the utility. The team includes a seasoned turnaround specialist and a former civil servant, signaling a commitment to long-term operational reform.
Reporting by Policy-Wire (PW)
