MPs urge rejection of Thames Water's £10bn creditor takeover, backing special administration

A cross-party committee of MPs has urged the government to reject a £10bn rescue deal from Thames Water's creditors and consider temporary public control of the utility.

• The Environment, Food and Rural Affairs Committee issued a report urging the government to reject the £10bn takeover proposal by creditor consortium London & Valley Water and to consider placing Thames Water into special administration.
• The committee said the law should be changed to allow the government to trigger special administration on performance grounds alone, rather than insolvency.
• Alistair Carmichael, the committee chair, said the government should reject creditor offers made in return for relief from pollution and poor-service fines.
• London & Valley Water said its enhanced proposal would write off billions in debt, provide £10bn of new capital, pay all fines, and pay no dividends until the company is turned around.