Thames Water creditors select John Hutton as chair if rescue deal proceeds
The former Labour minister would chair the water supplier under a proposed creditor takeover, with Mike McTighe moving to a vice-chair role. The deal remains under discussion.
Thames Water’s creditors selected former Labour minister Lord John Hutton as independent chair designate on Tuesday, 20 October, if their proposed takeover of the water supplier goes ahead, The Guardian reported. The proposed rescue concerns a company serving 16 million customers in southern England.
The creditor consortium, London & Valley Water, is pursuing a £10bn rescue deal, according to The Guardian. Creditors have spent months in talks with ministers and regulators over Thames Water’s future ownership. Hutton’s selection does not mean the takeover has been approved.
Who would lead Thames Water under the creditor plan
Mike McTighe, a telecoms and turnaround specialist who had been lined up in August to replace the current chair, Sir Adrian Montague, is now vice-chair designate, The Guardian reported. He is expected to work closely with Thames Water’s management team on the company’s overhaul if the creditors’ plan proceeds.
Hutton served in the governments of Tony Blair and Gordon Brown, including as work and pensions secretary, business secretary and defence secretary. He has also chaired the Nuclear Industry Association, Energy UK and manufacturing association Make UK, The Guardian reported. His selection brings experience in government and infrastructure to the proposed board.
Hutton said people in London and the Thames Valley had the right to expect the highest possible standards of customer service and environmental stewardship from their water company. He said those would be the focus of the proposed leadership, according to The Guardian.
The creditor deal and government options
London & Valley Water describes its proposal as a plan to recapitalise and stabilise Thames Water. The consortium says it remains in discussion over the proposal and aims to progress toward an agreement in autumn.
Thames Water has been trying to avoid bankruptcy and recently sought another £2.4bn from its creditors, The Guardian reported. Its need for further funding adds urgency to decisions about the supplier’s ownership and financing, while its customers continue to depend on its services.
Hutton’s selection follows Prime Minister Andy Burnham’s request for more radical Thames Water options, reported on 19 October. The Guardian said one option under consideration was converting about £100m in outstanding fines into a government stake. That earlier report concerned the government’s options; the creditors’ choice of a prospective chair is a separate step in their proposed takeover.
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Sources and context
- Thames Water creditors secure former Labour minister to drive rescue dealThe Guardian
- London & Valley WaterLondon & Valley Water
- Burnham urges officials to come up with more radical options for Thames WaterThe Guardian
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.