A group of lenders seeking to rescue Thames Water Utilities Limited has selected former British business secretary Lord John Hutton as its prospective chair, tying a leadership change to a proposed recapitalization.
London & Valley Water, a consortium of Thames Water lenders, announced the choice Oct. 20. Hutton would oversee a proposed 10-year turnaround at the utility, which serves 16 million customers across London and surrounding counties. The group also named Mike McTighe as prospective vice chair.
Hutton said customer service and environmental stewardship would be priorities.
The appointments are contingent on approval of the rescue bid. Thames Water said Oct. 16 that its board, regulators and relevant investment committees had not decided whether to take forward the consortium’s proposal.
Thames Water said it could not be certain of completing a recapitalization before some senior debt matures in March 2027, when its stable platform period also ends.
Separately, Thames Water is seeking a £2.4 billion increase in its emergency funding facility, from £3 billion to £5.4 billion. It said it had drawn £2.65 billion from the existing facility as of Oct. 15. If implemented, the increase would extend its projected liquidity into autumn 2027.
Creditors have an Oct. 29 voting date on consents tied to the proposed facility increase, though voting may close earlier if the required majority approves. Thames Water said it would seek funding in tranches, with each drawdown requiring creditor consent at the time.
