S&P drops Enviva to D

S&P said it downgraded its ratings for Enviva Inc. to D from CCC- and its senior unsecured debt to D from CC.

Enviva skipped the $24.4 million interest payment that was due by Thursday, the end of the 30-day grace period.

“The downgrade reflects Enviva's failure to make its interest payment of a substantial portion of its outstanding debt, which we consider to be a general default. Enviva's previously disclosed contract modifications are expected to result in significant losses and poor liquidity. We view its capital structure as unsustainable and believe the company is considering strategic alternatives and expect the outcome of these discussions will result in a significant debt restructuring or bankruptcy filing,” S&P said in a press release.

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