Creditors are set to vote on expanding the utility’s emergency funding facility as campaigners challenge the cost of its financial rescue

Pepco Group, which owns a minority stake in Poundland, has proposed deferring repayment of part of a £30 million loan at the center of the discount retailer's financial crisis. The Northern Irish company, Martin Property Group (MPG), has reconfirmed its interest in a takeover of Poundland, aiming to save over 10,000 jobs. MPG's proposals include full repayment of the £30 million loan upon maturity or accelerated repayment of half the amount. The company has secured support from major suppliers who risk significant financial losses if Poundland enters administration before the holiday season. The alternative to a rescue deal would involve breaking up the business, with rival retailers acquiring hundreds of stores, potentially leading to thousands of job losses just before Christmas. Government ministers are closely monitoring the situation, with Business Secretary Andy Burnham expressing concern over job protection. The crisis has drawn comparisons to the BHS collapse in 2016, which was politically contentious. Poundland's directors recently filed notice to appoint AlixPartners as administrator, granting a 10-day breathing period from creditors. However, this timeline could shorten if a rescue deal fails. Despite evidence of a potential turnaround, Gordon Brothers, the current owner, has been criticized for steering the company toward insolvency. Restructuring executives recently resigned in protest, and the Department for Business, Innovation, Science and Trade has begun preliminary investigations into Gordon Brothers' conduct. Suppliers have started curtailing deliveries due to concerns over unpaid invoices, and Gordon Brothers has restricted access to company finances, hindering routine payments. The situation remains critical as Poundland faces a potential collapse into administration within days.

(Reuters) -U.S. investment firms Silver Point Capital and Elliott Management are formulating a 10-billion-pound-plus ($13.53 billion) rescue package for Britain’s Thames Water, Bloomberg News reported on Friday, citing people familiar with the matter. The deal will comprise a major debt overhaul, including a multi-billion-pound haircut for senior creditors, in addition to reductions already expected for junior Class B bonds, loans and around 3 billion pounds in holding company debt, the report said. The rescue package will provide an equity boost of between 3 billion pounds and 4 billion pounds to stabilize the utility’s finances, according to the report. "The Creditors have submitted a detailed long-term turnaround plan that will fix the root causes of Thames Water’s problems, restore its balance sheet, rebuild customer trust and fix the fundamentals of the business once and for all," a spokesperson for the creditors, which include Silver Point Capital and Elliott, said in an emailed statement to Reuters. Thames Water did not immediately respond to a request for comment. Thames Water suffered a major setback on Tuesday in its fight to avoid nationalisation, as it said U.S. private equity firm KKR had pulled out of a multi-billion-pound rescue plan. Britain’s biggest water supplier is at the centre of a public backlash against the privatised water sector, which has been blamed for polluting Britain’s rivers and seas while hiking bills and prioritising dividend payouts over infrastructure investment. ($1 = 0.7393 pounds) UU: A Bull or Bear Market Play? Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks AI – 6 model portfolios fueled by AI stock picks with a stellar performance this year... In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if UU is on your watchlist, it could be very wise to know whether or not it made the ProPicks AI lists.