Committee publication · Correspondence · 15 July 2025

Correspondence from Thames Water regarding senior creditors, dated 14 July 2025

From: Environment, Food and Rural Affairs Committee

Summary

Thames Water's Chairman writes to the EFRA Committee chair to supplement a 10 July letter concerning senior creditors. He details a Class A Ad Hoc Group representing over £13 billion in debt, with a 15-institution negotiating subgroup holding over £9 billion working on a creditor-led recapitalisation proposal. The letter emphasises the credibility and infrastructure investment track record of the institutions involved.

Key findings

Class A Ad Hoc Group comprises over 100 institutions holding in excess of £13 billion of Thames Water's Class A Debt
Representative negotiating group of 15 major institutions (including Apollo, Elliott, Invesco, PIMCO, Royal Bank of Canada) holds over £9 billion of Class A Debt
Group includes pension funds, insurance companies, and asset managers with track record in UK infrastructure investment and long-term stewardship
Key discussions proceed through group advisors rather than individual creditors, typical for restructuring involving publicly traded instruments
Final transaction structure and future equity ownership remain under discussion; Thames Water deems it premature to comment

Tone

Procedural

Topics

water-utilitiescorporate-restructuringinfrastructure-financedebt-management

Key actors

Sir Adrian Montague, CBE, Rt Hon Alistair Carmichael MP, Thames Water Utilities Limited, Class A Ad Hoc Group, Apollo, Elliott, Invesco, PIMCO

Notable line

“A large, representative group of those senior creditors have over a number of months undertaken significant work to develop a fully-funded …”

Key Quotes

“… the Class A Ad Hoc Group comprises over 100 institutions and in excess of £13 billion of Thames Water's Class A Debt”
— Sir Adrian Montague · describing the scale of senior creditor involvement

“This group holds over £9 billion of Thames Water's Class A Debt and includes a mix of pension and insurance funds, asset managers, and investment funds with a strong track record of investment in UK infrastructure”
— Sir Adrian Montague · outlining composition and credentials of negotiating subgroup

“Discussions are ongoing and it would be premature to comment on the final transaction structure including any potential future equity ownership”
— Sir Adrian Montague · declining to disclose details of restructuring terms

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Source · parliament.uk record ↗