DISTRESSED DAILY: Gopher Resource Falls on Regulatory Probe News

Debt for recycler Gopher Resource has plunged in recent days as the company faces scrutiny over alleged worker exposure to excess levels of lead and toxins.

The company, which recycles lead-acid batteries, is reportedly under investigation by regulators after the Tampa Bay Times published a series showing that Gopher’s workers had been exposed to dangerous levels of lead in the air. Moody’s Investors Service says the outcome of the investigation could result in “adverse changes” to Gopher’s corporate credit rating.

Gopher’s nearly $500 million first-lien loan plunged from par in recent weeks to trade around 89 cents on the dollar ...