Creditors of Thames Water have tabled a revised rescue package for the debt-laden utility, offering to write off £4 billion, a quarter of their holdings, in exchange for looser targets on pollution and leakage.
According to The Times, the proposal, billed as a final offer, comes 18 months after shareholders abandoned the company, declaring it uninvestable.
It includes £20.5 billion of spending by 2030 and a further £24.9 billion in the following five years, with debt cut from more than £20 billion to £14.5 billion.
Gearing would fall to 52%, the lowest in the sector, allowing Thames to regain an investment-grade credit rating. Creditors want regulators to approve the plan, which would install infrastructure veteran Mike McTighe as chairman.