Thames Water is trying to close a debt rescue deal with creditors after a proposed takeover by US private equity firm KKR collapsed, as the company battles a £20 billion debt pile. The rescue effort comes amid a summer drought in Britain, with reports of E. coli contamination at some seaside resorts and wild swimming sites.
The company, which supplies 16 million customers, has been in crisis since 2023, when then chief executive Sarah Bentley abruptly stepped down. Current chief executive Chris Weston and chairman Adrian Montague have been trying to keep the business afloat since.
KKR's rescue plan fell through after a New York-based investment committee decided the political risks were too great, leaving Weston and Montague to sell a rescue plan to regulators and the government instead.
Creditors propose £9.6bn debt writeoff
A consortium of creditors called London & Valley Water has proposed writing off £9.6 billion of Thames Water's £20 billion debt pile. The consortium would put in £3.35 billion of fresh equity and £6.25 billion in funding.
In exchange, the creditors want the government to hold off from taking regulatory action over sewage discharges and investment delays.
Both the government and the creditors want to avoid a government-imposed Special Administration Regime, under which the state would take temporary control of the company. Creditors including Elliott, Apollo and Silver Point are seeking to avoid steep losses on their exposure to Thames Water's debt, while the Treasury is wary of taking on a new liability on the government's balance sheet.
Andy Burnham has said he wants more community or public control over water, including the possibility of the government taking a golden share in any reorganisation of Thames Water.
New finance chief joins with £1m fee
Steve Buck joined Thames Water as finance director in 2025 with a £1 million signing-on fee. He previously worked as finance director at Pennon, the company responsible for a 2024 cryptosporidium outbreak in Devon, and worked with Weston earlier in their careers at British Gas owner Centrica.
Hong Kong firm eyed as possible buyer
Hong Kong-based CK Hutchison Holdings, which owns Northumbrian Water, is seen as a possible buyer for Thames Water if it is given access to the company's books, as KKR was. CK Hutchison also controls Britain's largest container port, at Felixstowe, and owns the retailer Superdrug. Some opponents of a CK Hutchison deal have raised the company's connection to Beijing as a political obstacle.
John Lewis boss Peter Ruis departs
Separately, Peter Ruis has stepped down as store boss at John Lewis after three years in the role, during which he restored the retailer's "never knowingly undersold" pricing pledge through price matching. Sainsbury's and Asda have run similar price-matching initiatives to compete with online retailers and no-frills chains such as Aldi.
Revolut secures French banking licence
Digital bank Revolut has been granted a banking licence in France, marking a step up from its existing EU authorisation, which is held via Lithuania. Revolut, which also holds a UK banking licence, plans to make Paris its "Western European HQ."
