Thames Water creditors appoint Labour peer to chair rescue bid

Summarised from 3 outlets · Updated 20 Oct, 09:27 · Archive

Thames Water creditors have chosen Lord John Hutton, a former Labour business secretary, as independent chair designate if their rescue deal succeeds.

A consortium of Thames Water creditors has appointed Lord John Hutton, a former Labour business secretary, as independent chair designate for the utility if their rescue bid succeeds. The London & Valley Water consortium, which includes UK and US investment firms such as Elliott Management, Aberdeen Investments and Apollo Global Management, made the announcement as it seeks to prevent Thames Water from being nationalised.

Hutton served as MP for Barrow and Furness from 1992 to 2010 and held several cabinet roles under Tony Blair and Gordon Brown, including work and pensions secretary and business secretary. As independent chair, he would oversee Thames Water's proposed 10-year turnaround programme.

The appointment follows news that the consortium previously planned to appoint four new directors to Thames Water's board, including former Yorkshire Water chief executive Liz Barber, Dame Bernadette Kelly, the former permanent secretary at the Department for Transport, and Clive Selley, ex-chief executive of BT Openreach.

The consortium has also proposed offering a 'golden share' to the government as part of a revised rescue deal. This move appears designed to win backing from Prime Minister Andy Burnham, who has previously signalled interest in renationalising the water industry but whose government has stated it would prefer a 'market solution' for Thames Water, which serves around 16 million customers across London and the South East.

Thames Water has been under pressure to secure a rescue deal to avoid nationalisation. Any government takeover could result in costly legal battles with existing creditors owed billions of pounds.

How it is being reported

• Thames Water lenders to appoint Lord Hutton as independent chair in takeover bidThe former business secretary would take up the role if the group’s rescue bid is given approval.Independent Business · 20 Oct, 09:06
• Thames Water could tap Labour peer as chair if rescue deal goes aheadThames Water will appoint a Labour peer to become its new chair if a rescue deal goes ahead, a group of its creditors has said, as the embattled utility fights to stave off nationalisation. London & Valley Water, a consortium of investors and creditors to Thames Water which has submitted turnaround plans to keep the [...]City AM · 20 Oct, 08:51
• Thames Water creditors secure Labour's Hutton to drive rescue dealThe consortium of Thames Water creditors looking to rescue Britain's largest supplier has appointed a former senior Labour minister in a bid to help get a deal past government opposition.Sky News Business · 20 Oct, 08:12

In this story: Thames Water · Lord John Hutton · London & Valley Water · Andy Burnham · Elliott Management · Apollo Global Management · London · South East

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