Thames Water investors have said they are willing to discuss greater “public control” of the utility amid reports that Andy Burnham could temporarily nationalize the struggling firm.
Restructuring specialist Mike McTighe, working with Thames Water's largest group of creditors, said British and international investors were keen to work with incoming ministers to “rebuild confidence” in the debt-laden company.
McTighe said: “We look forward to meeting new ministers as soon as possible to discuss how we can work together for the benefit of customers, including by improving public scrutiny of the company's operations.
“We remain ready and willing to recapitalize Thames Water, return it to investment grade and begin the long process of restructuring.
“We urgently need government involvement to begin that process.”
Burnham, who will become prime minister on Monday, has previously said he wants to see greater public control of key public services, including water.
Reports have suggested he is preparing to temporarily nationalize the company, which is struggling with £20bn of debt, by placing it into a special administration regime (SAR).
Last week, the company's annual report warned of “material uncertainty” about its ability to secure sufficient liquidity to carry out a successful rescue plan.
A bailout plan by creditors is seen as the last realistic option to avoid being placed on a SAR after a previous bailout deal with US private equity giant KKR collapsed in May last year.
But creditors are already back to the drawing board after Environment Secretary Emma Reynolds warned last month that she did not believe her £10bn plan for Thames Water went far enough to protect customers or the environment.
Thames Water has also warned that a SAR would result in taxpayers having to fund the business to the tune of £2bn by the end of next year, according to the Sunday Times.
The company's creditors are understood to be willing to discuss further concessions to its proposed rescue plan to avoid burdening the taxpayer with the cost of keeping the business running and repairing its aging infrastructure.
McTighe, who is leading efforts to reform Thames Water's governance, said: “It will take time to fix a complex business like Thames Water, but we are committed to rebuilding trust with the customers and public we serve.”
