Thames Water lenders plan board overhaul if rescue bid approved

In response to the news that Thames Water’s creditors are planning to appoint four new directors to the board following the company’s recent rescue bid, Russ Mould, investment director at AJ Bell, believes the plan is to inspire confidence in the company’s future.

He said: “In an attempt to see off a possible nationalisation, Thames Water creditors have unveiled plans for a big refresh.

“The former head of Yorkshire Water, Liz Barber has been lined up to join the board along with two alumni from broadband infrastructure business Openreach and a former senior civil servant in Bernadette Kelly.

“The hope being that these are the sort of credible names which can inspire confidence in the company’s future in private hands.

“Groaning under the weight of its heavy debts and with cash expected to dry up faster than many of the UK’s reservoirs this summer, its lenders are seeking to avoid a situation where the business is renationalised under a special administration regime.

“Such an outcome would impose large losses on creditors, who are seeking to formally take ownership of the business, having already assumed de facto control, with plans to list it on the stock market as early as 2030.”