Credito Real collapsed after it defaulted on a 170 million Swiss franc ($176 million) bond in February, prompting bonds to shed 99% of their value.

The talks are centered on establishing what assets the company still had left and are viable for recovery, offering a rare chance for transparency, one source directly involved told Reuters Wednesday.

The person added that while the talks did not constitute negotiations yet, there was chance they could develop into them.

"It's a first step (to a deal)," the person said, noting that the bankruptcy proceedings in a Delaware court - originally scheduled for early October - would depend on the outcome of the talks.

Credito Real, which offered payroll lending and unsecured credit, did not respond to Reuters' request for comment.

Credito Real has said it opposes entering Chapter 11 proceedings, which would force the company out of the Mexican jurisdiction where its liquidation has been centered so far.

That process has seen the company settle its debts with local banks first.

Foreign bond holders have appealed and are weighing further legal action in Mexico to recoup losses.

Large groups like British asset manager Abrdn and Los Angeles-based DoubleLine Capital are among those who hold bonds in the company, according to Refinitiv data.

Bondholders face an uphill struggle as the most exposed unsecured creditor group.

The default by Credito Real, along with AlphaCredit and Unifin, have made banks less willing to finance non-bank lenders, analysts say, prompting fears about the non-bank sector in Mexico.

(Reporting by Isabel Woodford)