June 6 (Reuters) - U.S. investment firms Silver Point

Capital and Elliott Management are formulating a

10-billion-pound-plus ($13.53 billion) rescue package for

Britain's Thames Water, Bloomberg News reported on Friday,

citing people familiar with the matter.

The deal will comprise a major debt overhaul, including a

multi-billion-pound haircut for senior creditors, in addition to

reductions already expected for junior Class B bonds, loans and

around 3 billion pounds in holding company debt, the report

said.

The rescue package will provide an equity boost of between 3

billion pounds and 4 billion pounds to stabilize the utility's

finances, according to the report.

"The Creditors have submitted a detailed long-term

turnaround plan that will fix the root causes of Thames Water's

problems, restore its balance sheet, rebuild customer trust and

fix the fundamentals of the business once and for all," a

spokesperson for the creditors, which include Silver Point

Capital and Elliott, said in an emailed statement to Reuters.

Thames Water did not immediately respond to a request for

comment.

Thames Water suffered a major setback on Tuesday in its

fight to avoid nationalisation, as it said U.S. private equity

firm KKR had pulled out of a multi-billion-pound rescue

plan.

Britain's biggest water supplier is at the centre of a

public backlash against the privatised water sector, which has

been blamed for polluting Britain's rivers and seas while hiking

bills and prioritising dividend payouts over infrastructure

investment.

($1 = 0.7393 pounds)