Thames Water Creditors Pick Ex-Labour Minister to Lead Rescue Bid
London & Valley Water names Lord John Hutton as chair designate in a £10bn push to take over Britain's largest water supplier.
A creditor consortium pursuing a £10 billion rescue of Thames Water has named a former senior Labour minister as its proposed independent chair, a move widely seen as an effort to build goodwill with the current government as the deal awaits approval.
London & Valley Water, the consortium leading the takeover bid, announced Tuesday that Lord John Hutton has been selected as independent chair designate of the Thames Water board, contingent on the deal receiving the green light. Hutton served in senior cabinet roles during the Blair and Brown governments, lending the consortium a figure with significant political credibility.
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Thames Water, the United Kingdom's largest water supplier, has been under severe financial strain, and the £10 billion rescue package represents one of the most closely watched corporate restructuring efforts in recent British history. The appointment signals the creditors' intent to present a governance structure capable of satisfying regulators and ministers who hold sway over the outcome.
The selection of a chair with deep ties to the Labour Party appears strategically timed, as the consortium works to reassure a Labour-led government that the proposed ownership structure would be run with appropriate oversight and accountability. Whether the gesture translates into regulatory and political support remains to be seen, with the fate of millions of customers hanging in the balance.
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