March 16 (Reuters) – Lenders to Thames Water have offered to inject 3.35 billion pounds ($4.44 billion) of new equity and up to 6.55 billion pounds in new debt, the firm said on Monday, in a bid to secure a rescue deal for Britain’s largest water supplier.
The proposal, first reported by Sky News over the weekend, was submitted by a consortium of senior lenders that includes Elliott Management and Silver Point Capital.
Thames Water, which supplies about 16 million customers, is nearing collapse under hefty debt piles, which could trigger temporary nationalisation and wipe out creditors if a long-term restructuring deal is not reached.
The proposal includes commitments from the Company’s largest shareholders not to sell a significant proportion of their equity investment during the regulatory cycle to 2030, and prevents Thames from paying dividends until 2035.
($1 = 0.7552 pounds)
Reporting by Prerna Bedi in Bengaluru; Editing by Sonia Cheema and Sumana Nandy
