Thames Water’s senior creditors are considering talks with incoming UK Prime Minister Andy Burnham amid concerns that the government may place the water company into temporary public ownership to manage its financial crisis. Bloomberg reports that the creditors are pitching the government a “golden share,” a mechanism that would give the state additional influence over key decisions, as an alternative to more disruptive action such as putting the firm into special administration under a new political timetable.
Other outlets report that creditors are open to discussions about greater public control, following media claims that Burnham could temporarily nationalise Thames Water. The Guardian adds that the investor consortium behind a rescue bid is preparing for possible legal action, describing a scenario in which government intervention could trigger a wider dispute. The Guardian also states that the consortium is open to government involvement, while suggesting it is not necessarily aligned with public ownership as part of the immediate solution.
Overall, the reports indicate creditors are seeking a path that increases government oversight and stabilises the company’s future, while still attempting to avoid steps that could lead to major legal and restructuring challenges.
