Thames Water

Thames Water shareholders withdrew support following demands from UK regulator Ofwat to reduce the company's debt and make structural changes estimated to cost up to £8bn.

· Shareholders, including sovereign wealth funds, resisted Ofwat's demands, leading to a default by Thames Water's parent company.

· Ofwat's conditions, including reducing the gearing ratio, were seen as burdensome by investors, who felt blindsided.

· Thames Water now faces debt restructuring or potential renationalization amid public discontent over sewage pollution.

· Initial proposals by investors for bill increases and regulatory fines were rejected by Ofwat.

· Despite financial struggles, Thames Water has sufficient cash for 15 months but requires substantial investment for infrastructure improvements. The regulator's draft decision on business plans, including bill increases, is due in June, with a final decision at year-end.