This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Mexican non-bank lender Credito Real is said to be planning to file an insolvency agreement in a Mexican federal court as early as next week, according to sources. This prepackaged agreement is to be done in an effort to resolve its collapse last year since it defaulted on its bonds in February 2022. Sources said that bondholders holding more than 50% of Credito Real’s $1.9bn of dollar bonds agreed to the deal that will involve liquidation of its remaining assets. Bloomberg notes that under the agreement, Credito Real’s remaining loans will be placed into a trust to be overseen by a Mexican judge. The trust will make the payouts for bondholders as and when it collects the loan amounts. A recovery value of about 22 cents on the dollar over three years is expected.
Credito Real’s dollar bonds are currently trading at ~11 cents on the dollar.
For more details, click here