I would recommend checking the SMTP settings in Kentico to make sure you are connecting to the right SMTP. Then, also check the SMTP Server itself for more detailed errors. The error basically means that the SMTP server closed the connection while your application was trying to send a large e-mail. It looks like there could have been some time out or other error. Or, maybe SSL/TLS issue.
Are other emails sent OK? How many emails are you sending? Is the SMTP server able to handle the load?