Credito Real Ordered to Liquidate by Court, Seeks US Bankruptcy

Non-bank lender Credito Real SAB said a Mexican court has ordered it to liquidate, and hours later filed for Chapter 15 bankruptcy in Delaware, a move that protects its US assets during the Mexican proceedings.

The liquidation order came following legal action from a shareholder, and a judicial liquidator has been appointed and assumed office, according to a Mexican filing on Thursday. It’s the latest shock in a twisting saga for the Mexican firm, whose meltdown was exacerbated by a foreign-bond default earlier this year.

Just last month, some creditors attempted to force Credito Real into bankruptcy in the US. ...