MPs urge ministers to break off Thames Water talks with US hedge funds
Efra committee calls for emergency legislation enabling government to take public control of the company
TL;DR
- A cross-party group of MPs is urging ministers to cease talks with US hedge funds over Thames Water.
- The MPs recommend considering emergency legislation to place the company under public control.
- Concerns are raised about the opaque operations and lack of expertise of the consortium of 100 hedge funds and distressed-debt investors.
- The creditors are accused of seeking relief from environmental penalties and prioritizing debt interest over service improvement.
- The report suggests Ofwat and the government should withdraw from negotiations with the current consortium.
- Alternative options, including a special administration regime (SAR), should be explored to stabilize Thames Water and the sector.
- The London & Valley Water consortium claims their enhanced proposal offers new capital, debt write-off, and a commitment to reinvest profits and pay all fines, with no cost to the taxpayer.