MPs urge ministers to break off Thames Water talks with US hedge funds
Summary
A group of MPs wants the government to stop talks with US hedge funds that control Thames Water and consider taking public control of the company. Thames Water has £20 billion in debt and is managed by around 100 hedge funds, leading to concerns about rising bills, pollution, and poor service.Key Facts
- Thames Water is controlled by a consortium of about 100 hedge funds and distressed-debt investors.
- The company has debts totaling £20 billion.
- MPs want the government to consider emergency laws to take control and stabilize Thames Water.
- The current law does not allow special public control (Special Administration Regime) based solely on performance issues.
- The hedge funds seek to renegotiate debts and get relief from environmental fines while continuing negotiations.
- MPs say the hedge funds lack the expertise to properly manage Thames Water’s public services.
- Thames Water’s 16 million customers face rising bills, water pollution, and service problems.
- The government is urged to explore options like special administration or new laws to restore the company and prepare it for new buyers.
- Some leading creditors include US hedge funds like Elliott Investment Management, Silver Point Capital, BlackRock, and M&G.
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