Thames Water Faces Lenders' Debt Write-Off Proposal and Rival Bid from CKI Amid Cash Crisis

# Thames Water Lenders Propose Debt Relief Deal A consortium of Thames Water's existing lenders, known as London and Valley Water, has offered to write off 30% of the company's debt and inject billions in new money. The proposal seeks leniency from future pollution fines. Thames Water serves 16 million customers in the UK and is set to run out of cash within 12 months without a rescue deal.

The lenders' offer includes writing off a third of Thames Water's debt in return for leniency over future fines for missing pollution and leak targets. The consortium has the backing of the Thames Water board. Thames Water is controlled by a majority of its lenders.

Rival Bidder Seeks Opportunity Hong Kong's CKI Holdings Limited wants a chance to table a rival bid for Thames Water.

CKI Holdings owns 75% of Northumbrian Water. " The group of lenders said CKI already had a chance to buy Thames Water. The lenders told the BBC that CKI had ample opportunity to make a good offer for Thames Water during a bidding process run by the investment bank Rothschilds.

The lenders said CKI failed to present a competitive bid for Thames Water. Andy Hunter said CKI was barred by the lenders from rebidding for Thames Water when the selected preferred bidder aborted their bid. Andy Hunter said: "We never had the opportunity to re-engage.

" A spokesperson for the lender consortium said: "We strongly reject the claims made by CKI's Mr Hunter.

Regulatory and Government Positions A decision by regulator Ofwat on whether to recommend to government that lenders take ownership of Thames Water is still under discussion, BBC News reported.

Ofwat's decision on Thames Water is expected this summer. The UK government said it would put Thames Water in administration if that were to become necessary. The UK government has previously said it would prefer a market-based solution for Thames Water.

Criticisms of Proposals The group of lenders wants leniency from future pollution fines.

Andy Hunter said: "They would appear to be negotiating and demanding a whole raft of regulatory concessions, which cast doubt on the integrity of the regulation, and ultimately will be to a cost to the consumer. " The lender consortium said the CKI bid would have cut Thames Water's investment programme significantly.

The lender consortium said the CKI proposal would have delayed the turnaround, reduced spending on infrastructure upgrades and replacing pipes, and made it harder to reduce pollution and clean up rivers.