A consortium of investors holding most of Thames Water's debt has instructed lawyers to prepare a legal challenge if an incoming government led by Andy Burnham brings the company into public ownership. The move comes as ministers prepare to decide whether to back a private rescue plan or place the company under temporary state control.
The London & Valley Water (L&VW) consortium, which represents creditors holding about £17 billion of Thames Water's roughly £21 billion debt ($28 billion), has appointed litigation firm Pallas Partners to advise on potential court action if its rescue proposal is rejected. People close to the consortium said the move was precautionary and lenders remained willing to work with the new government on a privately funded rescue plan.
