Thames Water owner Kemble defaults on £400 million of bonds

Thames Water signage at a pumping station (PA) (PA Wire)

The holding company of Thames Water Ltd. says it defaulted after failing to make some interest payments due on its debt.

Kemble Water Finance Limited has sent a formal notice of default to the holders of its £400 million bonds due in 2026 as it didn’t pay interest due on Tuesday on some of its other debt, according to a statement.

Consultants at Alvarez & Marsal are advising the UK water and sewage company as it seeks to start talks with creditors over its debt structure.

The company is requesting creditors not to take any action, so that it can have the stability to explore “all options,” according to the filing. Kemble expects to be able to provide a further update in the coming weeks.

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Comment: Thames Water wants to raise prices 40%, spill more sewage and not be fined - after lining shareholders' pockets