Put Thames Water into temporary state control, ‘junior’ creditors will argue

£5bn rescue plan would set ‘troubling precedent’, bondholders who face losing all of their money will say

Nils Pratley: Thames Water’s creditors are being too greedy

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Thames Water should be placed into temporary government control to avoid setting a “deeply troubling precedent”, according to people close to bondholders who face losing all of their money in the latest rescue bid.

The struggling utility is under the control of a group of lenders who hold the bulk of its huge £20bn debt pile. Those “senior” creditors on Tuesday revealed details of a last-ditch rescue effort with £5bn in funding, alongside writing off about £6.7bn in debt.