Key facts
- Thames Water's creditors are preparing a revised rescue proposal to avoid public ownership.
- Prime Minister Andy Burnham favors a special administration regime for Thames Water.
- Thames Water's CEO received a pay raise to over £1 million.
- The sale process for Atom Bank has stalled due to a lack of serious bidders.
- Will Wright has stepped down from directorships at Interpath Advisory's holding company and subsidiaries.
Creditors of Thames Water are reportedly preparing a final offer to the new government to prevent the water utility from falling into public ownership. Prime Minister Andy Burnham, who replaced Sir Keir Starmer, has indicated a preference for a special administration regime for the company, citing its poor environmental and performance records.
Thames Water's chief executive, Chris Weston, saw his pay package increase to over £1 million in the last financial year, a move that has drawn criticism from politicians like Emma Reynolds and Richard Tice. The creditors' revised proposal is expected to include sweeteners related to equity, debt, and governance in an attempt to avert what they consider 'Armageddon'.
Separately, the auction process for Atom Bank, founded by Anthony Thomson, has stalled. Despite interest from building societies and a European private equity firm, no formal bids have materialized, leaving shareholders like BBVA and Toscafund in a difficult position. Pollen Street Capital, a backer of Tandem Bank, is understood to have been the most serious party.
Speculation surrounding leadership changes at Interpath Advisory, a restructuring firm formerly part of KPMG UK, has also surfaced. Corporate filings show Will Wright, who heads the firm's UK business, has stepped down as a director of various entities. However, industry sources suggest this is part of a streamlining effort by new private equity owner Bridgepoint, which acquired Interpath for £800 million, rather than an indication of Wright's departure.