Australian investment bank Macquarie is reportedly one of the lenders to Thames Water's troubled parent company. However, The Guardian stated that the bank was criticized for its role in England's water industry privatization after loading Thames Water with debt during its ownership from 2006 to 2017.

Even though Macquarie sold its stake in Thames Water back in 2017, the utility's debt skyrocketed from £3.4 billion ($4.3 billion) to £10.8 billion ($13.9 billion) under its ownership, leading to criticism and regulatory fines due to environmental violations.

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Why Macquarie is Criticized For Lending Thames Water's Parent Company

Earlier reports from VCPost, show that Thames Water's parent company, Kemble Water Finance, facing default on its debt, could undergo major restructuring or even collapse, raising concerns about the utility's stability.

Now, Macquarie asserts that it invested £11 billion ($13 billion) in improving Thames Water's infrastructure during its ownership. However, critics argue that this investment was inadequate, and Macquarie prioritized paying out excessive dividends instead. 

Additionally, the involvement of other lenders, such as Dutch bank ING, Allied Irish Banks (AIB), and Chinese state-owned banks, raises additional concerns about Thames Water's and its parent company Kemble's financial stability.

Kemble is seeking an extension for its £190 million ($240 million) loan, which is due this month. 

However, Thames Water's shareholders have declined to provide £500 million ($630 million) required for various payments, including the Kemble loan. Macquarie's prior investment of £130 million ($165 million) in Kemble's debt, which is separate from the current loan, further complicates the financial situation.

READ MORE: Thames Water Seeks Help From Advisors As Debt Crisis Escalates; Government Intervention Likely to Happen