(Bloomberg) -- A judge suspended the liquidation of non-bank lender Credito Real SAB in Mexico at the request of a shareholder, as some of the company’s creditors look for it to file Chapter 11 bankruptcy in the US.
The shareholder had argued the liquidation didn’t safeguard their rights to proper access to justice, according to three people familiar with the matter and documents seen by Bloomberg.
Angel Francisco Romanos Berrondo, who stepped down as chief executive officer last year, had won an order to liquidate the payroll lender in June, setting the stage for a legal brawl over the best way to repay creditors owed $2.5 billion. The implosion of Credito Real, which defaulted on a Swiss bond in February, sparked a crisis of confidence in Mexico’s non-bank lenders.
Credito Real did not immediately respond to an emailed request for comment. The company has six business days to respond to the ruling and can still appeal.
The company on Wednesday said it’s being probed by Mexico’s securities regulator.
In a separate filing, the company said it had no debts with Banco Santander SA, contradicting a statement from bondholders that said Credito Real had around $40 million of debts with the Spanish bank. The bondholders are fighting to place the company in Chapter 11 bankruptcy in the US.
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