Investors in Thames Water have said they are willing to discuss greater “public control” of the utility amid reports Andy Burnham could temporarily nationalise the struggling company.
Turnaround specialist Mike McTighe, who is working with the largest group of Thames Water’s creditors, said UK and international investors were willing to work with incoming ministers to “rebuild confidence” in the debt-laden firm.
Mr McTighe said: “We are keen to meet new ministers as soon as possible to discuss how we can work together in the best interests of customers, including by enhancing public control of the company’s operations.
“We remain ready and willing to recapitalise Thames Water, return it to investment grade, and begin the long process of turning it around.
“We urgently need Government engagement to begin that process.”
Mr Burnham, who becomes prime minister on Monday, has previously said he wants to see more public control of key utilities, including water.
Reports have suggested he is preparing to temporarily nationalise the company, which is battling a £20 billion debt pile, by putting it into a special administration regime (SAR).
Last week, the firm’s annual report warned of a “material uncertainty” about its ability to secure enough liquidity to carry it through to a successful rescue plan.
A rescue plan by creditors is seen as the final realistic option to avoid being placed into an SAR after a previous rescue deal with US private equity giant KKR collapsed in May last year.
But creditors have already been sent back to the drawing board after Environment Secretary Emma Reynolds last month warned she did not believe their £10 billion plan for Thames Water goes far enough to protect customers or the environment.
Thames Water has also warned that an SAR would see taxpayers have to fund the business to the tune of £2 billion by the end of next year, according to the Sunday Times.
The company’s creditors are understood to be willing to discuss further concessions to their proposed rescue plan to avoid burdening the taxpayer with the cost of keeping the business going and fixing its ageing infrastructure.
Mr McTighe, who is leading efforts to overhaul Thames Water’s governance, said: “It will take time to fix a complex business like Thames Water, but we are committed to rebuilding trust with the customers and public we serve.”
