MEXICO CITY, Nov 15 (Reuters) – Troubled Mexican non-bank lender Credito Actual (CREAL.MX) is in talks with international bondholders, prompting collectors to delay their request for an involuntary U.S. chapter listening to, based on two sources near the matter.
Credito Actual collapsed after it defaulted on a 170 million Swiss franc ($176 million) bond in February, prompting bonds to shed 99% of their worth.
The talks are centered on establishing what belongings the corporate nonetheless had left and are viable for restoration, providing a uncommon probability for transparency, one supply straight concerned instructed Reuters Wednesday.
The particular person added that whereas the talks didn’t represent negotiations but, there was probability they may become them.
“It is a first step (to a deal),” the particular person stated, noting that the chapter proceedings in a Delaware court docket – initially scheduled for early October – would rely upon the result of the talks.
Credito Actual, which supplied payroll lending and unsecured credit score, didn’t reply to Reuters’ request for remark.
Credito Actual has stated it opposes getting into Chapter 11 proceedings, which might pressure the corporate out of the Mexican jurisdiction the place its liquidation has been centered to this point.
That course of has seen the corporate settle its money owed with native banks first.
International bond holders have appealed and are weighing additional authorized motion in Mexico to recoup losses.
Giant teams like British asset supervisor Abrdn and Los Angeles-based DoubleLine Capital are amongst those that maintain bonds within the firm, based on Refinitiv knowledge.
Bondholders face an uphill battle as essentially the most uncovered unsecured creditor group.
The default by Credito Actual, together with AlphaCredit and Unifin (UNIFINA.MX), have made banks much less keen to finance non-bank lenders, analysts say, prompting fears concerning the non-bank sector in Mexico.
Reporting by Isabel Woodford
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