The crisis enveloping Thames Water has deepened after its holding company announced it had been unable to meet debt repayments.
Kemble Water said it missed an interest payment that was due on Tuesday.
The firm said it had asked its lenders to take no immediate action so as to “provide a stable platform while all options are explored”.
The announcement paves the way for a potential restructuring of Thames Water, which serves nearly a quarter of Britain’s population.
Sky News revealed last week that the company’s shareholders had decided not to proceed with a promised £500m equity injection amid an impasse with Ofwat, the industry regulator.
The firm provides water and sewage services to 15 million customers across London and southeast England.
When asked for a statement, Thames Water referred Sky News to Kemble Water.
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