A group of over 200 shareholders of Credito Real, a troubled Mexican payroll lender, this week issued a legal letter demanding the company hold a general assembly within the next 15 working days in their latest bid to recoup billions in losses, Reuters reported. Credito Real defaulted on a 170 million Swiss franc ($175.98 million) bond last year, kicking off a commercial liquidation process in Mexico criticized by shareholders for lacking transparency. The legal letter, dated May 23 and seen by Reuters, references a clause under Mexican law which allows any shareholder to demand a general assembly after two years. Signed by Alvaro Martinez — a shareholder and representative of the minority holding group — the letter outlines several requests for the assembly, including getting access to Credito Real's financial statements over 2021 and 2022. This includes getting details into the covert settlements Credito Real made with secured lenders — mainly large Mexican banks — as well as a thorough audit of the remaining funds. The group's lawyer, Teodoro von Harrsch, said that Credit Real is now legally obligated to hold an assembly, and that "if they don't, we will go to a judge." The demand for an assembly comes as Credito Real attempts to end a legal battle with a bondholder group that took it to court in Delaware to force them to undertake U.S. bankruptcy proceedings instead of in Mexico. Read more.
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