The debt crisis deepens as the holding company Defaults on Debt

Thames Water bondholder warns creditor losses will deter investment in UK. Nationalisation threatens to discourage financing of Britain’s ageing infrastructure. Nationalisation is a major challenge to the UK's ageing infrastructure, it has been claimed. Nationalised water companies like Thames Water have been bailed out by the Government.

Supplier sends formal notice of default after failing to pay interest that was due Tuesday. Thames Water owner defaults on £400m bond. Supplier sending formal notice to default after failed to pay the interest due on Tuesday. The company has been in the process of paying interest on the bond since 2008.

Thames Water provides water and sewage services to nearly a quarter of Britain's population. It comes after shareholders decided not to proceed with a £500m equity injection. Thames Water says it will continue to struggle to find a way to cope with the crisis. It is the latest financial setback to hit Thames Water, which provides water for nearly a third of the population.

Fall to 14.4p comes after shareholders said they were unwilling to inject more funds. Shareholders said they would not be able to inject further funds into the firm. The fall comes amid uncertainty over the firm's future as Thames Water owner bond prices fall to record lows.