The crisis enveloping Thames Water has deepened after its holding company announced it had defaulted on its debt.

Kemble Water said it missed an interest payment that was due to be paid 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.

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