(Bloomberg) -- ING Groep NV is among lenders on a loan due for repayment by Thames Water’s parent company this month, according to a person familiar with the matter who asked not to be named because details are private.

Bank of China, Industrial and Commercial Bank of China (ICBC) and Allied Irish Banks are also lenders to Kemble Water Finance Ltd, the Financial Times reported. So far, the lenders have refused to extend the loan without an injection of fresh equity from Thames Water’s owners, the newspaper said, citing people familiar with the matter.

Shareholders last week refused to inject £500 million ($631 million) into the troubled supplier and Kemble said it won’t be able to repay the loan on April 30 without an extension.

Read more: Thames Water Crisis Deepens as Investors Refuse Payout

In case of a default, the two Beijing-owned banks could become shareholders of Thames Water. At least one of the lenders has tried to sell out of its position in the loan in recent weeks, according to distressed debt investors, but struggled to find buyers even at deep discounts to face value, the FT reported.

A spokesperson for ING declined to comment. Spokespeople for Bank of China, ICBC and AIB didn’t immediately respond to requests for comment.

Natwest Group Plc is the agent bank on the loan, Bloomberg reported on Wednesday. Agents in syndicated loans typically ensure the borrower complies with financial covenants and that payments are being made. Although they usually only act in accordance with the instructions of lenders, they can still have ringside seats to any discussions in the event of a restructuring.

Read more: Natwest Is Agent on Loan at Heart of Thames Water Debt Saga

Dividends from the Thames Water operating company are Kemble’s main source of cash, but industry regulator Ofwat bars water utilities with a poor financial and environmental record from making payouts to investors. 

Ofwat is already probing whether Thames broke the rules last year when it paid £37.5 million to Kemble, and from next year dividend restrictions will tighten further. 

--With assistance from Sarah Jacob.

©2024 Bloomberg L.P.