Castle Water, an independent water retailer, has expressed intentions to invest an additional £1 billion into Thames Water, surpassing current proposals should it win control of the struggling utility. John Reynolds, the chief executive of Castle Water, critiqued the existing restructuring plans under negotiation with creditors, claiming they inadequately address both the financial and environmental crises facing Thames Water.
Thames Water currently serves around 16 million customers in London and the Thames Valley but is burdened by £17 billion in net debt built up since its privatization. Reynolds noted that ongoing negotiations with creditors, led by hedge funds including Elliott Investment Management and Silver Point Capital, have stalled, and he stressed the urgency of addressing pollution issues for any restructuring to succeed.
Castle Water aims to target infrastructure investments such as the outdated Mogden sewage works in west London, which Reynolds emphasized as essential for resolving pollution challenges. He proposed that additional funds could be unlocked through greater concessions from creditors.
In contrast, the current creditor-led turnaround plan, which includes significant debt write-offs, might result in Thames Water not meeting pollution standards for up to 15 years, according to Reynolds. The alternative scenario involves a special administration regime that could lead to temporary government control of the company to facilitate debt relief and find a buyer.
A representative from London & Valley Water, part of the creditor group, rejected claims that discussions had stalled, reaffirming their commitment to securing a solution by Christmas. They also highlighted a proposed £20.5 billion investment over the next five years aimed at addressing the company’s foundational issues and reducing pollution.
Thames Water, while under pressure, stated that discussions with its creditors and regulators regarding recapitalization efforts are ongoing, focusing on timely solutions to benefit both customers and the environment.
Source: https://www.theguardian.com/business/2025/nov/17/thames-water-bidder-cash-injection-castle-water-pollution