UPDATE 1 — UK's Thames Water reaches deal with key Class B creditors on recapitalisation

(Updates with details from paragraph 2 onwards) Oct 16 (Reuters) — Thames Water on Friday said it had reached an agreement with key Class B creditors on a proposed recapitalisation, securing support from holders of more than 60% of its junior Class B debt and advancing efforts to restructure Britain's biggest water utility. The proposal would see about £1 billion ($1.33 billion) of Class B debt written off, with those creditors receiving a roughly 5.9% recovery through equity and other rights in the restructured company in return. Thames Water said talks with the London & Valley Water consortium, Ofwat and other regulators on the proposed recapitalisation were ongoing, with no decision yet taken on whether to proceed with the consortium's proposal. ($1 = 0.7511 pounds) (Reporting by Ankita Bora in Bengaluru; Editing by Shreya Biswas) ((Ankita.Bora@thomsonreuters.com;)