Credito Real seeks approval of sale process for auto financing unit

By Sarah Lizee

Olympia, Wash., Oct. 27 – Credito Real, SAB de CV is seeking court approval of a sale process for its U.S.-based auto financing unit, Credito Real USA Finance LLC, according to a motion filed with the U.S. Bankruptcy Court for the District of Delaware.

The company said that at a shareholder meeting on Sept. 10, 2021, it was authorized to consider offers for the sale of the Credito Real USA Finance interests in amounts that exceeded the threshold of 1x its book value, which was about $45 million at the time.

Under the proposed bid procedures, the final bid deadline is 4 p.m. ET on Dec. 14. An auction, if one is held, will take place on Dec. 16, and a sale hearing will take place on Dec. 22.

The company said it isn’t currently seeking approval of a stalking horse deal, but it may do so in the future.

Credito Real said the proposed sale presents a significant source of value to creditors in its Chapter 15 case.

Credito Real provides consumer financing. It is based in Mexico City. The 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 Chapter 15 case number is 22-10630.

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