(Bloomberg) -- Credito Real will file as soon as next week a prepackaged insolvency agreement in a Mexican federal court, people familiar with the matter said, in a bid to resolve the collapse of what had been the country’s biggest payroll lender. 

Creditors provided the company with documentation this week showing that holders of more than 50% of Credito Real’s $1.9 billion of dollar bonds had agreed to the deal, which allows for the filing to move forward, said the people, requesting anonymity since the talks are private. 

Representatives for the company and a group of creditors steering the agreement didn’t reply to requests for comment. 

The so-called concurso mercantil will result in the liquidation of the lender’s remaining assets, the people said, adding that it could be pushed back beyond next week. 

The filing aims to bring to a conclusion a bankruptcy process that is already playing out in US courts.  

Credito Real’s collapse in February 2022 was part of a wave of more than $5 billion in defaults by the country’s lightly regulated non-bank lenders that has locked the industry out of global capital markets. 

Under the plan to be filed, which was originally proposed in May, Credito Real’s remaining loans will be placed into a trust that will be overseen by a Mexican judge. Bondholders will receive payouts from the trust as those loans are collected, with the company now estimating a recovery of about 22 cents on the dollar over three years — 1 cent less than it had previously forecast.

About half of the total will be paid out in the first year, according to a document posted this week on the company’s website. Notes due in 2028 are reflecting that payout, changing hands this week for 11 cents, according to Trace data. 

Before it defaulted, Credito Real had a loan portfolio of around 53.4 billion pesos ($3.1 billion). Roughly $420 million of assets remain, according to the latest estimates published this week, that date from the end of July. 

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