Thames Water lenders preparing legal challenge in event of Burnham nationalisation
Thames Water lenders are preparing a legal challenge against a potential nationalization of the company by the incoming Burnham-led UK government. The creditors are seeking full repayment of debts, which could cost the government billions, while the government remains critical of the company's past performance and current rescue proposals.
Why it matters
The potential collapse or nationalization of the UK's largest water utility poses significant financial risks to the state and raises questions about the future of public utility management.
Image source, EPA By Simon Jack Business editor Published 10 minutes ago The lenders to Thames Water are preparing a legal challenge in case a Burnham-led government attempts to nationalise the UK's biggest water company.
Burnham - who takes over as PM on Monday - has previously said he wants to see "greater public control" of the water and energy sectors and has called for Thames Water to be nationalised.
Its lenders had proposed a deal to write off nearly half of that and inject new cash in return for some leniency from future pollution fines, but this deal has previously been rejected by the government as being "weak" and bad for consumers and the environment.
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