Thames Water lenders preparing legal challenge in event of Burnham nationalisation

Core point

Burnham, who will become Prime Minister on Monday, has expressed a desire for greater public control over the water and energy sectors. Thames Water's lenders have proposed a deal to write off nearly half of the company's debt and inject new cash, but the government has rejected this proposal. In the event of nationalisation, creditors plan to pursue full payment of outstanding debts, potentially resulting in a multi-billion-pound bill for the government. The Department for Environment, Food and Rural Affairs has stated that the government is prepared for any eventuality regarding Thames Water's future.