Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what steps she is taking to ensure creditor debt-restructuring occurs during water company special administration procedures.

Defra cannot ensure that creditors agree to debt restructuring. When a Special Administration Regime is commenced on insolvency grounds, upon exit, a company may be transferred if rescue is unlikely, or where transfer is likely to secure more effective performance. Debt restructuring may be one way of achieving that purpose.