(Bloomberg) -- Operadora de Servicios Mega SA, a Mexican non-bank financial institution, has hired Houlihan Lokey Inc. ahead of potential refinancing talks, according to people familiar with the matter.

The Jalisco-based company retained the financial adviser as it mulls options ahead of a $352 million maturity on global bonds in February, said the people, who asked not to be named as talks are private. 

A spokesperson for Houlihan Lokey declined to comment while a representative for Mega didn’t reply to messages. 

Late last year, the company announced an exchange offer that sought to push back maturities until 2028. The offer ended up being canceled.

Mexico’s shadow banks, as non-bank lenders are called, have been hit by a series of defaults in recent years that resulted in billions of dollars of losses for investors. Financial troubles at AlphaCredit, Credito Real, and Unifin Financiera, among others, eroded confidence in the sector.

Mega was hit with a double-notch downgrade this month when S&P Global Ratings cut its rating to CCC-, citing the likelihood the company will struggle to obtain financing for its upcoming obligations. It was downgraded last month by Moody’s Ratings. 

“Extended efforts in restoring its funding plan, coupled with efforts to conserve liquidity, stifle Mega’s business growth and performance, and increase the risk of default on the obligations as time constraints intensify,” Moody’s analyst Rodrigo Marimon Bernales wrote in a note. 

Mega’s bonds maturing in 2025 last changed hands at 33.75 cents on the dollar, according to Trace data.

--With assistance from Michael O'Boyle.

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