Thames Water, Britain’s largest water utility serving over 15 million customers, is in need of a multibillion pound rescue after its preferred bidder backed out. Mike McTighe, a renowned corporate troubleshooter, is working with the company’s largest group of creditors to restructure debts and inject new funds to avoid nationalization.
McTighe, known for his expertise in turnarounds, is meeting with stakeholders to discuss a proposal that would involve swapping debt for equity and providing additional funding. If successful, he may take over as chairman of Thames Water.
The group of creditors, representing around £13bn of the company’s borrowings, includes major investors like Elliott Management, Aberdeen, Invesco, Apollo Global Management, and M&G. They are determined to find a private sector solution to Thames Water’s crisis.
Despite setbacks with KKR and ongoing regulatory challenges, efforts to recapitalize Thames Water continue. The company faces a deadline in late July to finalize a rescue deal, with the government ready to step in if necessary.
McTighe’s involvement adds momentum to the creditors’ plan, offering hope for a successful turnaround and avoiding a significant burden on taxpayers.
Pic: iStock
Thames Water’s journey towards financial stability and operational efficiency continues, with stakeholders working tirelessly to secure a viable future for this essential utility provider.
