Thames Water Owner Defaults on Debt in Sign of Deepening Crisis

The holding company of Thames Water Ltd. defaulted on about £1.4 billion ($1.7 billion) of debt after failing to make an interest payment, in the latest escalation of the crisis at the UK’s largest water utility.

Kemble Water Finance Limited sent formal notices of default to creditors saying it missed an interest payment on Tuesday, according to a statement. The non-payment triggered cross-default across all of the holding company’s debt.

The parent company now needs to step up talks with creditors to avoid a messy restructuring that could wipe out Thames Water shareholders. Prime Minister Rishi Sunak’s administration has ...