(Bloomberg) -- A bond issued by Thames Water Ltd.’s holding company Kemble Water Finance Ltd. slumped to a record low on Tuesday as uncertainty continues over a loan due next month.

The £400 million ($508 million) bond, which matures in 2026, fell as much as 2.7 pence to a low of 31.53 pence, according to Bloomberg pricing source CBBT.

The debt has been dropping in value since last summer, when concerns intensified about the debt pile and financial stability of Britain’s biggest water supplier. The bonds slumped in recent days following an earlier Sky News report that a group of lenders to Thames Water’s parent company hired EY as an adviser ahead of the loan’s due date.

Kemble is due to repay the £190 million by April 30. The companies are waiting for a verdict from industry watchdog Ofwat as to whether Thames breached license conditions by funneling a payment to parent Kemble last year, making it unclear how Kemble will get the funds to repay the loan.

Read more: Thames Water’s Future Hangs on Ruling Over Investor Payouts

Hiring EY is a sign lenders don’t want to extend the loan, according to bondholders, who asked not to be identified because they’re not authorized to speak publicly about the matter. The liquidity on the bond is so low it takes only a few sellers to move the price, one of the people said.

Thames Water declined to comment on Tuesday. Kemble also declined to comment.

At the same time, Thames Water faces the possibility of being brought into a proposed London class action lawsuit over sewage dumps, according to court documents prepared for a hearing Tuesday.

Read more: Severn Trent Faces First UK Class Action Suit Over Sewage Dumps

Law firm Leigh Day, which is bringing similar suits against Severn Trent Plc and four other firms, filed the application against Thames Water earlier this month. They allege that the companies abused their dominant position in the utilities market and under-reported instances where sewage was pumped into open water. 

Both sides are discussing whether to pause the case due to concerns about Thames Water’s financial stability. Auditors said in December that the utility’s parent company could run out of money by April if shareholders didn’t inject more equity.

--With assistance from Priscila Azevedo Rocha, Abhinav Ramnarayan and John Deane.

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