London & Valley Water has hired specialists in litigation in response to speculation about a possible temporary nationalisation of Thames Water. The choice is described as precautionary but highlights how future governance of the company is becoming the central issue between investors and public authorities. A consortium comprising 100 institutional investors holds 17 billion pounds on 21 billion pound debt of the society.

There is also discrepancy shown by Guardian regarding total amount which appears instead 12 billion pounds: a difference that does not clarify the matter available. It remains evident however the financial weight of creditors gathered in London & Valley Water. Investors claim openness to government involvement in management crisis but indicate no ownership of state-owned enterprise.

This distinction is substantial: the group seems prepared to accept more intrusive supervision whilst keeping private salvation within negotiated terms. At centre of dossier stands Andy Burnham who may promote passage temporarily under control of State. London & Valley Water adopted dual record: opening dialogue political and, parallelly, preparing legal defence if solution public compromises interests economic of creditors.

Mike McTighe destined likely become president of Thames Water should consort obtain approval from Government will have said he would work with Burnham, his Government and local authority officials to rebuild trust in company and sector. Declaration places recovery of credibility alongside restructuring finance. Proposal advanced by investors worth $10 billion requires Government permission.

Its objective according to person cited Guardian is realise solvent restructure. This path evades procedure financed by taxpayers and allows creditors recover largest possible share of sums exposed. Preparation for potential conflict not equivalent to decision start immediate action.

Recourse specialists presented as measure protection against uncertain scenario. However dimension potential dispute reflects both debt amount and complexity interest institutional involved. Beginning July, source reported still intented proceed offer even temporary nationalisation.

Consortium might participate race together other subjects but one close observer noted this solution prolongue process. Continuity offer private non eliminate therefore cost temporal intervention public. Thames Water serves 16 million clients between London and River Thames.

Company subjected pressure interests indebitement which restricts space delay decision. Crisis concerns value recuperable for investors but also setup operator responsible essential service scale. Position consortium shows strategy articulated three levels: obtaining approval plan worth $10 billion accept stronger public presence without cede ownership preserve possibility legal defence.

Node will be determining whether Government take sufficient guidance from creditor led rescue or prefer assume temporarily control society. Still unclear form eventual public intervention, conditions which creditors compete Thames Water and impact nazionalizzazione on their financial recovery. Until decision Government dialogue institutional preparation legal defence continue proceeding together maintaining open game future governance group.