Thames Water creditors offer up £5bn as part of emergency turnaround plan

Regulator Ofwat concerned that plans do not write off enough debt to secure investment-grade credit rating

• Nils Pratley: Thames Water's creditors are being too greedy

Lenders to Thames Water have said they will provide 5bn in funding to the struggling utility, in an emergency turnaround plan that has quickly raised concerns from the water regulator, Ofwat, over potentially inadequate losses for debt holders.

The group of existing senior creditors to Thames Water, a band of more than 100 financial institutions, said their plan would inject 3bn of equity and another 2.25bn of debt.