Credito Real OK’d to enter stalking horse agreement with Bepensa

By Sarah Lizee

Olympia, Wash., Jan. 25 – Credito Real, SAB de CV gained court approval of a stalking horse agreement with Bepensa Capital, Inc. for the debtor’s U.S.-based auto financing unit, Credito Real USA Finance LLC, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the stalking horse agreement represents a bid for 100% of the equity at a purchase price of $62 million.

Bid protections include a 3% breakup fee and a $750,000 expense reimbursement.

Importantly, based on the progress that has been made in the sale process, Credito Real USA Finance’s largest secured lender, Wells Fargo Bank, NA, agreed to extend the maturity date of its existing credit facility to April 14 from Jan. 30.

This will allow Credito Real to close a transaction with a successful bidder.

In light of the maturity extension, the company sought an extension of the sale timeline as well.

Under the new timeline, the final bid deadline is 4 p.m. ET on Feb. 3, the auction will take place on Feb. 7, and the sale hearing will take place on Feb. 15.

Credito Real provides consumer financing. It is based in Mexico City. An involuntary Chapter 11 petition was made under case number 22-10842 in the New York court, but the case number was changed to 22-10696 in the Delaware court. The company’s voluntary Chapter 15 case was filed on July 14, 2022 under case number 22-10630.

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