According to Kemble Water, an interest payment was past due on Tuesday.
According to the company, it has requested that its lenders hold off on taking any further action in order to “provide a stable platform while all options are explored”.
The news opens the door for Thames Water, which provides service to about 25% of the country’s population, to perhaps undergo a restructure.
Last week, news broke that the company’s shareholders, facing a standoff with industry regulator Ofwat, had opted not to move forward with a planned £500 million stock injection.
It is understood that a portion of that was set aside to settle Kemble Water’s debt.
