Mexico’s Kaltex Falls Into Default, S&P Expects Exchange Offer

Grupo Kaltex, one of Mexico’s biggest textile producers, fell into default after it failed to pay back $218 million of bonds maturing Monday, but is expected to restructure its debt in the coming weeks, according S&P Global Ratings.

The credit grader lowered Kaltex’s credit rating to “D” on Tuesday after the missed principal payment, but said the company did pay interest on the debt. S&P said it’s probable that the company will make a partial distressed exchange offer for the notes.

Kaltex, which supplies denim and other fabrics to clothing companies including Levi Strauss & Co. and Vera ...