(Reuters) -Some creditors of Thames Water will pledge to retain their ownership in the struggling British utility until 2030 as part of a rescue plan, Sky News reported on Tuesday. Earlier this month,
Thames Water creditors to pledge no sale before 2030, Sky News reports
Thames Water's Financial Rescue Plan
(Reuters) -Some creditors of Thames Water will pledge to retain their ownership in the struggling British utility until 2030 as part of a rescue plan, Sky News reported on Tuesday.
Details of the Creditor Commitment
Earlier this month, the creditor group — named London & Valley Water and comprising 15 institutions including Aberdeen Investments, Elliott, PIMCO and Silverpoint Capital — proposed a last-ditch rescue plan to prevent the utility from being nationalised.
Impact on Shareholders and Dividends
The lender group, which accounts for the bulk of the company's 20 billion pound ($26.90 billion) debt pile, are to pledge to Ofwat, the industry regulator, that they will not offload the company until it is in a sufficiently healthy position to attain a stock market listing, the report said.
Regulatory Approval Process
Thames Water and the London & Valley Water consortium declined to comment on the report.
The creditors will also commit to not paying a dividend to shareholders for the length of the transformation plan or till its return to the stock market, the report added, citing an executive at one of the participating funds.
The pledge will form part of a package to be submitted to Ofwat by the Class A creditors as soon as this week, the report said.
($1 = 0.7435 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Sahal Muhammed)
