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(Sharecast News) - Thames Water could face a 749m bill if a proposed deal handing senior creditors control of the embattled utility goes through, it was reported on Wednesday.
According to the Financial Times, the figure includes 160m in fees payable to senior creditors and 254m of "other costs", most of which are advisory fees due to lawyers and bankers. It would also face an estimated 285m in accrued interest owed to creditors from the day the deal completes, alongside almost 50m of fees due to other creditors.
The newspaper report was based on terms seen by the FT.
In a statement, Thames Water said it "remains focused on securing a recapitalisation to restore financial stability, continue its operational turnaround and deliver essential services for 16m customers.
"The proposed deal is intended to support and accelerate that turnaround."
The creditors have yet to comment on the report.
The deal is designed to rescue the ailing business, which has racked up nearly 20bn in debt amid a dire service record. It has been trying to avoid being temporarily renationalised for two years.
Lenders including Elliot Management, the US hedge fund, and private equity firm Apollo Global Management are currently in talks with the regulator Ofwat about the bailout, which would see them take ownership.
Creditors have pledged to invest 3.35bn of new equity and provide an initial 3.25bn of new debt. Under the terms of the deal, they are also proposing a new management plan that could see the company seek a stock market listing by 2030.
However, in return they want Ofwat to approve reduced environmental investments and remove sanctions until 2030. They also want millions of outstanding fines written off.
Should Ofwat back the deal, it will need to be put out to a three-month public consultation before being signed off by the high court. However, Thames Water is expected to run out of cash by October. The plan was first submitted to the regulator in June 2025.
Thames Water - the UK's biggest water company, with customers across London and the south east - was in sale talks last year but preferred bidder KKR, the US private equity giant, pulled out at the last minute.