Thames Water creditors pledge £3.4bn of new equity in improved rescue bid

Russ Mould, investment director at AJ Bell, said: “An improved rescue bid for Thames Water keeps hopes alive that the UK utility could avoid nationalisation. Consortium London & Valley Water has proposed to inject £3.35 billion of new equity and up to £6.55 billion in new debt. The deal is far from done and dusted, as regulators and the company’s stakeholders must review the terms.

“Like a leaky tap that has been dripping for years, it’s clear the problem must be fixed – the big unknown is when it will happen. Thames Water seems to have been on the brink for years and yet a permanent solution still seems like a story for tomorrow.”