March 14 (Reuters) - Lenders to Thames Water have
offered to inject 3.35 billion pounds ($4.43 billion) of new
equity into Britain's biggest water supplier as part of an
accelerated effort to secure a rescue deal, Sky News reported on
Saturday.
The increased capital injection was included in a revised
proposal submitted to industry regulator Ofwat within the last
10 days, according to the report.
The offer from creditors including Invesco ( IVZ ), Elliott
Management and Silver Point Capital comes as Thames Water hovers
on the brink of temporary nationalisation, with hundreds of
millions of pounds of new funding required by the end of this
month, the report added.
In exchange, creditors would receive a minimum 10% equity
stake in the recapitalised company, Sky News reported in
January.
Reuters could not immediately verify the report. Invesco ( IVZ ),
Elliott Management and Silver Point Capital did not immediately
respond to a Reuters request for comment.
A Thames Water spokesperson declined to comment on the Sky
News report but said the company was "working constructively
with stakeholders" to deliver a market-led recapitalisation in
the best interests of customers and the environment, adding it
remained hopeful of reaching an agreement.
The company, which serves about 16 million customers, has
become emblematic of the water sector's failure, drawing
criticism over sewage pollution while grappling with nearly 20
billion pounds of debt.
If a long-term restructuring agreement is not secured,
Thames Water is expected to be placed into the government's
special administration regime, effectively a form of temporary
nationalisation.
($1 = 0.7563 pounds)