Kemble Water, the parent company of Thames Water, is on the brink of insolvency following its announcement to its creditors about failing to pay £400 million in bonds.
Previously, Kemble Water disclosed its inability to repay another loan of £190 million.
This financial strain has been exacerbated as Thames Water’s shareholders recently decided against a proposed £500 million investment in the water provider, which serves one-fourth of England.
How Shareholders Extracted Billions of Pounds from Thames Water
Kemble Water’s financial operations rely solely on dividends from Thames Water.
Recently, it was revealed that the future of Thames Water is uncertain and might be influenced by two Chinese state-owned banks, as the company urgently seeks solutions to prevent nationalisation.
The group of Kemble’s lenders consists exclusively of international banks, notably including the Bank of China and the Industrial and Commercial Bank of China, both under the ownership and control of the Chinese government.
