Thames Water's £10 billion creditor rescue deal should be ditched, say MPs

An influential cross-party group of MPs says Thames Water’s proposed £10 billion creditor rescue deal should be rejected and that the Government should bring the company back under public control. The Environment, Food and Rural Affairs (Efra) Committee report warns the takeover plans by London & Valley Water—consortium of more than 100 creditors—lack “the interests of the public, the company or the environment at heart” and prioritise extracting value rather than long-term turnaround. MPs also criticise the “opaque” structure and limited information about creditors. The plan is viewed as the final realistic option after a previous KKR deal collapsed in May. The committee argues laws should be changed to trigger special administration on performance grounds before insolvency. With fines and service issues unresolved, it says the “doom loop” may end with Special Administration.