California Resources Is Just Days Away From Full-Blown Default

California Resources Corp. has just days to avert a default on missed loan payments, starting the countdown to a potential bankruptcy.

Lenders agreed to hold off on taking action until June 14 after the oil and gas company missed May 29 payments on its credit facility and term loans, according to a filing. Three sets of creditors are entitled to demand immediate repayment because of the failure, but the majority in each case opted to wait for a few more days, the company said.

The delay gives California Resources time to work out a settlement plan, which could ...