Credito Real Says It’s Failing to Find Cash to Avert Default (1)

Investors holding Credito Real SAB’s deeply distressed bonds suffered a blow as the Mexican payrolls lender said it hasn’t been able to refinance a note maturing Wednesday. The company hired DLA Piper and FTI Consulting to help evaluate restructuring options.

Credito Real looks to be headed toward default on 170 million Swiss francs ($184 million) of bonds, capping a swift downfall for a company that had been a market darling for the past decade. The lender is working to repay the debt and raise funds, it said in a statement, but “some of the elements of this strategy, ...