Abengoa plans cost cutting measures

Spanish renewable energy firm Abengoa, which is engaged with lenders, planned to undertake certain measures which could impact about 10% of its workforce.

The company employs around 5,000 workers in Spain and some 17,000 worldwide.

Source: Reuters

Abengoa and its U.S-based subsidiaries file for bankruptcy

Spain-based renewable energy company Abengoa S.A.’s subsidiary Abeinsa Holding, along with 13 affiliated debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware (lead case number 16-10790).

The company is represented by R. Craig Martin of DLA Piper. Documents filed with the court state that global slowdown, distress within the energy sectors and a over leveraged balance sheet led to the filing of bankruptcy.

Parent company Abengoa S.A. itself filed for Chapter 15 protection on 28 March 2016. The company had received backing from 75% of its lenders, 15.04 % more than the required threshold of 60%, to  approve its restructuring plan.

Abengoa would present, as part of its restructuring, a plan to file Chapter 11 bankruptcy for all its affiliates in the United States and Chapter 15 for all affiliates to apply for creditor protection and a homologation of the agreement in the US. This move would permit the company to complete the Financial Viability Plan that has already been accepted by lenders.

Further, Abeinsa Holding’s Chapter 11 filing follows the 24 February 2016 Chapter 11 filing of Abengoa Bioenergy U.S. Holding and affiliated debtors. Abeinsa Holding’s Chapter 11 petition indicates total assets greater than $1bn.

Source:BankruptcyData

Abengoa reaches an agreement with 75% of its lenders to restructure debt

Spanish energy company Abengoa S.A won approval from 75% of its lenders to restructure its debt of €9.5bn.

The company, currently in pre-insolvency, would have become Spain’s largest ever bankruptcy if it had failed to reach an agreement its lenders.

Abengoa, which needed backing from 60% of its lenders before 28 March 2016, would now present this approval to the Spanish court as it seeks more time to avoid bankruptcy.

Source: Reuters