Abengoas Netherlands based subsidiary Abengoa Bioenergy Netherlands BV, filed for bankruptcy on Wednesday and shut its ethanol plant in Rotterdam.
The parent company of the Dutch subsidiary had also filed for bankruptcy in April 2016.
The Europoort ethanol plant, Abengoa’s largest in Europe, had a processing capacity of about 380,000 tonnes/year.
The company has appointed Borsboom & Hamm as its administrators, overseeing the bankruptcy proceedings.
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.
Spanish renewable energy firm Abengoa S.A. was granted bankruptcy protection from creditors amid objections from a group of insurance companies who claimed that the company’s debt restructuring talks was unfair to U.S. creditors.
Previously, Abengoa had entered into a pre-insolvency standstill agreement with key creditors that gave the company time until 28 October 2016 to continue negotiations on restructuring its debt, which as per court papers, totals more than €14.6bn ($16.48bn).
However, a group of insurance companies, including Liberty Mutual Insurance Co., AIG and Zurich American Insurance Co., which had issued $250m in surety bonds tied to Abengoa’s construction of U.S. power plants, called the Spanish proceeding “manifestly contrary” to U.S. public policy because it forced them to abide by a standstill agreement without due process.
The insurance firms were arguing that the Spanish restructuring proceedings should only be recognized if they were identical to a U.S. bankruptcy proceeding.
With the approval from the U.S. Bankruptcy Court, Abengoa would receive all the benefits of U.S. bankruptcy law, including the so-called automatic stay that halts lawsuits and prevents creditors from seizing assets.
Spanish utility company Iberdrola S.A. closed an issuance of €1bn in green bonds priced at 99.943% of their nominal value. Proceeds would be utilized to refinance its onshore wind park assets in Spain, Portugal and the UK.
Green bonds are issued to fund projects that have positive environmental and/or climate benefits.
The notes pay an annual coupon rate of 1.125% and mature on 21 April 2026.
Lenders to the notes are as follows:
- Banca IMI SPA
- Banco de Sabadell SA
- BNP Paribas
- Caixabank SA
- Citigroup Global Markets Ltd
- HSBC Bank Plc
- Merrill Lynch International
- Mizuho International Plc
- The Royal Bank of Scotland Plc
The court of Seville has granted Abengoa S.A. an additional seven months until 28 October 2016 to strike a deal with lenders and avoid bankruptcy.
Creditors would contribute €1.8bn over the next five years in exchange for a 55% stake in the company.
Further, 70% of existing debt would be swapped for equity, giving other creditors a 35% stake in the company.
Creditors who infused €800m into the company as financial guarantees to develop projects would end up with a 5% stake in the restructured company.
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.
Headquartered in Madrid, Spain, Deoleo S.A. is company engaged in the manufacturing, processing and marketing of bottled olive oil, vinegars, sauces and other food products. Major brands of the company include Bertolli, Carbonell, Carapelli, Sasso, Koipe, Sensat, Figaro and Friol.
On 13 June 2014, CVC Capital Partners acquired a 29.99% stake in Deoleo by offering €0.38 per share and on 30 December 2014, secured an additional 18.1% stake, taking its total stake in Deoleo to 48.1%. Currently, CVC holds a 50% stake in the company.
3Q’15 Trading Update:
- Deoleo’s sales for 9M’15 period rose 11.8% y/y to €628.7m on account rising prices of olive oil across Italy and Spain, despite a poor harvesting season where crop output was hampered by unfavourable weather conditions. Rising prices were attributed to a poor harvesting season in Europe, primarily in Spain and Italy.
- EBITDA declined sharply by 46.9% y/y to €31.8m.
- With €24m drawn under its €85m Sr.Sec Revolver, the leverage covenant kicks in if more that 40% or €35m is drawn.
- Net financial debt as on 30 September 2015 was €524m and LTM Net leverage was 9.8x.
For further reading, a short snippet is provided in the attached excel.
Attached file: Deoleo S.A.