Mexican payroll and business lender Credito Real SA B de CV said its planned refinancing of a 170 million Swiss franc bond, worth $184 million, hadn’t materialized, pointing to a possible nonpayment and restructuring ahead for the embattled shadow bank, WSJ Pro Bankruptcy reported. Credito Real has until the end of Wednesday to repay or refinance the outstanding bond, or could be deemed in default. Failure to pay would likely trigger a cross-default on other debt obligations, including the company’s dollar-denominated bonds. The company also said on Wednesday that it had retained law firm DLA Piper and restructuring adviser FTI Consulting. It is working with its financial stakeholders to evaluate strategic alternatives and “resolve its short-term and long-term financing situation,” it said. Bonds for Credito Real have lost almost half their value since late last month over uncertainty on its ability to repay the Swiss bond. The company had been working with Goldman Sachs to help line up secured financing. Last year, it had approached its Swiss investors to refinance the bond, but was rebuffed.
