SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Mexican non-bank lender Credito Real is said to be preparing for a bankruptcy filing in the US by this week, as per sources. The company defaulted on the principal payment of its CHF 170mn ($180mn) 2.875% bond due February 9, 2022 and was subsequently downgraded by Fitch to RD. As per reports, Credito Real is looking to finance the bankruptcy process from funds given by existing creditors. Ever since the default in February, the company has also simultaneously been working with creditors on a restructuring plan. Credito Real in exchange filing said, “A Chapter 11 filing is among the restructuring options that company is considering as it seeks to preserve value for its stakeholders.” The company has total debt at MXN 53.3bn ($2.72bn) of which $1.9bn is in the form of global bonds.

Credito Real’s dollar bonds are trading at highly distressed levels of less than 10 cents on a dollar.

For the full story, click here

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