S&P drops Gavilan to D

S&P said it downgraded Gavilan Resources LLC and its second-lien loan to D from CCC- after the company skipped the monthly interest payment on its $450 million loan.

The agency said it doesn’t expect Gavilan to make the payment within the five-day grace period.

“We expect the company to enter into a restructuring agreement with its lenders and bondholders or file for Chapter 11 bankruptcy,” said S&P in a press release.

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