The treasurer of the Conservative Party has emerged as a primary leader in a bid to revive the financially troubled Thames Water, seeking a substantial ownership stake in return.

Graham Edwards is collaborating with a consortium that includes Castle Water, a prominent beneficiary of the sector’s liberalization, alongside the wealthy Pears family.

Castle Water has become the largest water retailer in the UK, catering to 450,000 businesses and public sector offices. This growth follows the policy changes enacted during Theresa May’s time in office, which allowed independent companies to handle supply and sewage billing for non-residential customers.

In 2017, Castle Water acquired Thames Water’s non-household customer portfolio for £100 million and has since expanded, reporting annual earnings of £434 million.

The consortium is reportedly ready to take control of Thames Water with a financial rescue package worth up to £4 billion.

While this may appear to be a hefty sum for Castle Water, sources indicate that financing for the deal would be facilitated by Edwards, who has served as Tory treasurer since 2022 and previously contributed £5.5 million during Rishi Sunak’s leadership campaign.

Edwards, a co-founder of Castle Water, built his wealth through the property firm Telereal Trillium and maintains strong ties with the William Pears Group, which owns a £6 billion property portfolio both in the UK and internationally.

Castle Water has chosen not to comment on the current speculation, though it has not disputed reports from the Bloomberg news agency.

Thames Water is undergoing significant restructuring, aiming to attract new equity investors after its existing group of nine shareholders withdrew their support for a pledged £3 billion investment, determining the company to be “uninvestable” earlier this year.

At the same time, Thames is negotiating £3 billion in bridging loans with its creditors while managing total debts amounting to £18 billion. This financial restructuring requires approval from the High Court, with hopes that the legal proceedings will conclude by the end of January.

The firm has recently appointed Julian Gething, currently a director at turnaround consultancy Alix Partners, as chief restructuring officer to guide the company through its recapitalization efforts and prevent entering administration.

Gething’s hiring signifies an acknowledgment that the current management team at Thames requires assistance. The company is headed by chairman Sir Adrian Montague, seasoned in managing troubled public interest firms, and Chris Weston, who took over as chief executive early this year, along with finance director Alastair Cochran.

Gething, 59, will remain affiliated with Alix while contracting with Thames until the completion of the financial restructuring.

Previously, Gething worked for Talbot Hughes McKillop, now part of Alix, and his early career involved the intricate administration of the Robert Maxwell conglomerate following the tycoon’s death in 1991. His past restructuring roles include assignments with Center Parcs and Four Seasons Health Care.

In an official statement, Thames Water mentioned that Gething would offer specialized guidance as the company continues its balance sheet recapitalization process, aiming to ensure a more stable financial future.

Gething is also expected to serve on the Thames board as an executive, assisting in developing and executing strategies to improve the balance sheet and complete the equity raising process.