Thames Water creditors offer golden share

Thames Water, Britain's largest water company with 16 million customers, is struggling under a £20 billion debt pile and faces potential nationalisation by incoming Prime Minister Andy Burnham. A consortium of creditors, London and Valley Water (including Elliott Investment Management, Silver Point Capital, Apollo Global Management, Invesco, and Farallon Capital), has proposed a rescue plan involving a £10 billion investment, debt write-offs, and a 'golden share' for the government to veto key decisions. The creditors have also offered enhanced public control structures. However, the previous government rejected the plan as insufficient for customers and the environment. Burnham has signaled support for public ownership, and creditors have threatened legal action if nationalisation proceeds. Thames Water reported a swing to profit but warned of material uncertainty about its liquidity. CEO Chris Weston called for clarity from Burnham. The new Environment Secretary Angela Eagle will oversee the process.