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Thames Water's creditors are aware of a "short window" to save the company.

Thames Water's senior creditor said that there was a "short window" to a market-led recovery of the water company, after U.S. Private equity firm KKR withdrew from a multibillion pound financing plan on Tuesday.

The creditors announced on Wednesday that they had presented a long-term solution to the problems of Thames Waters.

The water company in Britain, the largest, is heavily indebted. On Tuesday, KKR pulled out of an equity investment worth about 4 billion pounds.

The group of senior creditors said that they were stewards with a track record and could provide "substantial new investment" in order to turn the company around under a new leadership.

The Creditors stated that Thames Water needed an urgent and fundamental reset. There was a short window of time in which a solution based on the market could succeed.

According to a source near the creditors, corporate troubleshooter Mike McTighe is providing advice to them. He could be a candidate to become chairman if this proposal succeeds.

In March, Thames Water agreed to delay a challenge against the regulator's decision about how much it can increase customer bills until it had explored the possibility of raising equity. This deferral will expire at the end of next month.

Thames Water's spokesperson declined to comment. When it announced on Tuesday that KKR was leaving, Thames Water said that they would "progress the discussions on senior creditors' plans with Ofwat, and other stakeholders". $1 = 0.7389 pounds (Reporting and editing by Kate Holton; Paul Sandle)

(source: Reuters)