Bidders for Thames Water are prepared to fire key senior managers and could instate a new board led by Mike McTighe. Chief executive Chris Weston faced criticism for a 195k bonus after three months, and the board was criticised for paying senior bonuses from a 3bn emergency cash lifeline. A consortium of investors owed 13bn of the company’s 17bn debt proposes about 1bn in additional funding through debt write-offs and fresh capital. Lenders presented a plan to invest over 9bn in facilities over five years and seek a regulatory reset with less onerous pollution and leakage targets. The government will act in the national interest.
Bidders for Thames Water are prepared to fire key senior managers if necessary as part of their plan to restructure the stricken utility, the BBC understands. Sources close to the deal accept that the government needs to be seen to be tough with a company that has been heavily fined for failing to reach required operational and environmental standards. "If the government insists we need a management clear-out we can help with that," said one person close to the process.
That job would fall to a new board of directors headed by telecoms and regulator veteran Mike McTighe who has been in lengthy talks with Ofwat, the industry regulator, and the government. Chris Weston, Thames Water's chief executive, was criticised by MPs for accepting a 195k bonus after just three months in the job. Politicians also criticised the current board for paying bonuses to senior staff out of a 3bn emergency cash lifeline.
A consortium of investors who are owed 13bn of Thames' 17bn debt pile are also offering to sweeten a rescue proposal by providing approximately 1bn in extra funding through a combination of additional debt write-offs and fresh capital. They are hopeful that a combination of more pain for them, more money for the company and potential axe-wielding at the top will persuade the government and the regulator that Thames is turning a new page.
Collection
[
|
...
]