Lenders offer over $4.4 billion equity injection to rescue Thames Water, Sky News reports

Reuters
03/14
UPDATE 1-Lenders offer over $4.4 billion equity injection to rescue Thames Water, Sky News reports

Adds details and background from paragraph 3 onwards

March 14 (Reuters) - Lenders to Thames Water have offered to inject 3.35 billion pounds ($4.43 billion) of new equity into Britain's biggest water supplier as part of an accelerated effort to secure a rescue deal, Sky News reported on Saturday.

The increased capital injection was included in a revised proposal submitted to industry regulator Ofwat within the last 10 days, according to the report.

The offer from creditors including Invesco, Elliott Management and Silver Point Capital comes as Thames Water hovers on the brink of temporary nationalisation, with hundreds of millions of pounds of new funding required by the end of this month, the report added.

In exchange, creditors would receive a minimum 10% equity stake in the recapitalised company, Sky News reported in January.

Reuters could not immediately verify the report. Invesco, Elliott Management and Silver Point Capital did not immediately respond to a Reuters request for comment.

A Thames Water spokesperson declined to comment on the Sky News report but said the company was "working constructively with stakeholders" to deliver a market-led recapitalisation in the best interests of customers and the environment, adding it remained hopeful of reaching an agreement.

The company, which serves about 16 million customers, has become emblematic of the water sector's failure , drawing criticism over sewage pollution while grappling with nearly 20 billion pounds of debt.

If a long-term restructuring agreement is not secured , Thames Water is expected to be placed into the government's special administration regime, effectively a form of temporary nationalisation.

($1 = 0.7563 pounds)

(Reporting by Bipasha Dey in Bengaluru, additional reporting by Akanksha Khushi in Bengaluru, Editing by Louise Heavens)

((Bipasha.Dey@thomsonreuters.com;))

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