The creditor consortium seeking to rescue Thames Water, operating under the name London & Valley Water, has announced the selection of Lord John Hutton as independent chair designate of the company’s board, contingent on regulatory approval of the proposed rescue deal. Hutton is a veteran of senior government positions, having served as work and pensions secretary, business secretary, and defence secretary under prime ministers Tony Blair and Gordon Brown. His previous roles also include leadership positions at the Nuclear Industry Association, Energy UK, and the manufacturing association Make UK, as well as chairing the Association of Infrastructure Investors and London Luton Airport.
The announcement comes as creditors engage in ongoing negotiations with government ministers and regulators regarding the future ownership structure of Thames Water, which supplies approximately 16 million customers across the south of England. The company has faced mounting financial pressures and recently requested an additional £2.4bn from creditors to address its cash flow challenges. The creditor group’s rescue proposal centers on a £10bn financing package designed to stabilize the struggling utility.
Mike McTighe, a telecommunications and restructuring specialist, has been appointed as vice-chair designate. Previously announced as the intended replacement for current chair Sir Adrian Montague under the creditors’ proposed takeover, McTighe is now positioned to work alongside Hutton and the management team in a supporting capacity. In comments accompanying the announcement, Hutton emphasized the importance of maintaining service standards and environmental responsibilities to residents and businesses dependent on Thames Water’s operations.
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