A creditor consortium including Apollo Global Management, Elliott Management, Silver Point Capital, Aberdeen, and Assured Guaranty has submitted a revised plan to rescue Thames Water, the UK’s largest utility, according to a Bloomberg report.

Operating as the London & Valley Water group, the creditors are seeking Ofwat’s approval for a five-year turnaround strategy involving $27.4bn (£20.5bn) in investment and operational spending. The plan outlines measures to cut pollution and leaks, including large-scale replacement of ageing water mains.

The financial restructuring would involve a multibillion-pound debt write-off and fresh capital raised through both equity and debt. A previous proposal included £3bn in new equity and £2bn in debt financing, but talks remain ongoing with Ofwat over the final mix.

The consortium described its proposal as “a market solution which delivers financial resilience, without the need for any taxpayer funding or government support.”

Key sticking points include the amount of new equity creditors must provide, the scale of debt haircuts, and regulatory performance targets. Environment Minister Steve Reed has rejected calls for leniency on sewage-related fines, insisting Thames Water must meet the same standards as its peers.

Should negotiations fail, Thames Water risks entering special administration, a temporary state-controlled insolvency regime for essential service providers.

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