Key facts
- Thames Water creditors propose appointing former Yorkshire Water CEO Liz Barber and ex-BT Openreach boss Clive Selley to the board if their takeover bid succeeds.
- The creditor consortium, London & Valley Water (L&VW), aims to prevent the government from placing Thames Water into special administration.
- Mike McTighe is proposed as the new chair, replacing Sir Adrian Montague.
- The proposed appointments are intended to reassure the government and demonstrate a commitment to leadership overhaul.
- A public ownership campaign group criticised the plan as a 'cosy stitch-up' not serving public interest.
- The company is awaiting a decision from regulator Ofwat on its request to increase customer bills by nearly 59%.
A consortium of Thames Water creditors, known as London & Valley Water (L&VW), has proposed appointing new directors, including former Yorkshire Water CEO Liz Barber and ex-BT Openreach chief Clive Selley, as part of a takeover bid. This move is aimed at reassuring the government and preventing the company from being placed into special administration, a form of temporary nationalisation. Mike McTighe, a corporate troubleshooter, is slated to become the new chair if the £10bn rescue deal is approved. The proposals come as Thames Water awaits a decision from regulator Ofwat on a nearly 59% customer bill increase and faces competing restructuring plans from creditors.
The creditor group, which includes major investors like Apollo and Elliott Management, has been accused by a public ownership campaign group of merely 'shuffling the deckchairs on the Titanic' with their proposed board overhaul. Mayor of Greater Manchester Andy Burnham has advocated for greater public control, potentially through special administration, which could cost taxpayers up to £2bn. The prime minister has also expressed anger over recent bill hikes for Thames Water customers.
L&VW aims to take formal control of the company, which has £21bn in debt, and has hired legal teams to strengthen its position. The consortium seeks to avoid the losses that would be imposed on creditors if the company were to enter administration. McTighe stated that the 10-year plan is designed to 'fix the foundations' and rebuild trust with customers and the public, with a potential stock market relisting as early as 2030.