Creditors of the debt-laden utility Thames Water have indicated a willingness to consider public control of the company, potentially under the leadership of London Mayor Sadiq Burnham.
This development marks a significant pivot in the ongoing restructuring saga, where lenders have previously prioritized a private-sector solution to avoid state intervention.
The move introduces a new variable into the high-stakes negotiations between the utility's lenders and the UK government.
While a consortium of approximately 100 investors has been advancing a £10 billion rescue bid, the creditors' openness to a public option suggests that the private proposal may not be sufficient to secure their support without significant concessions or a hybrid structure.
The UK government has been accelerating its own plans to nationalise Thames Water, citing the utility's severe financial distress and environmental failures.
The potential involvement of Burnham, who has been a vocal critic of the utility's management, adds a layer of political complexity to the situation.