Abengoa assumes that take longer to close its complex restructuring – Yahoo Finance Spain

By Jose Elias Rodriguez

MADRID (Reuters) – Abengoa and a number of advisors of the company and its creditors on Wednesday detailed market plans to make the company viable renewable through a complex restructuring that left to avoid justice Seville would be the largest corporate bankruptcy in Spain.

During a lengthy presentation sent to the market supervisor, they noted that to date 40 percent of the financial creditors of the company support the preliminary agreement debt restructuring signed last week by a group of banks and bondholders.

Abengoa acknowledged, however, that before March 28, when the deadline of preconcurso of creditors, will not reach three quarters of passive necessary to force the signing of all the creditors, leaving the commercial court of Seville an extension that will decide the future of the company Andalusian flag.

“it is the intention of the company to continue negotiations with other creditors to reach an agreement before the end of the month “said President Antonio Fornieles during a conference call.

According to the schedule of the restructuring, the company expects the March 27, an auditor certifies that a majority of 60 percent of financial indebtedness adhere to agreement.

A day later, when the deadline of preconcurso, Abengoa ask the judge overtime to try to get the law firm 75 percent of creditors, he said a source with knowledge of the situation told Reuters .

tHE FEASIBILITY oF NEW COMPANY

If the restructuring is successful, Abengoa reduce its financial debt to 4,923 million euros from 9,395 million finals had at the end of the year, and obtain financing to exit the current hole and make a positive ebitda from 2017.

to revive the company, creditors will assume debt for equity swaps and a rebate of 70 percent corporate debt, leaving current shareholders with only 5 percent of the capital.

Thanks to the preliminary agreement reached with some of its creditors, Abengoa will get immediate funds this week to meet immediate liquidity needs, which Houlihan Lokey representative, advisor to the bondholders of Abengoa, amounted between 135 and 140 million euros.

In total, more than 1,000 million new money the company will be injected to ensure its viability.

The main financial creditors of Abengoa are Banco Popular, Banco Santander, Bankia, CaixaBank , CACIB, HSBC while bondholders are Atestor, Blackrock, Centerbridge, AM Delta, DE Shaw, Elliott Management, Eton Park, Invesco, KKR Credit, Oak Hill Advisors and Värde.

Some of the bondholders, as Blackrock, Eton Park, Delta AM and Invesco not among those who inject funds into Abengoa .

the bondholders to inject new funds will receive up to 55 percent of the capital of the group, while creditors who sign the guarantee line will have 5 percent of Abengoa.

the remaining capital, 35 percent will be held by holders of old debt, in a deal that will unify the two types of company shares (titles a and B) and impose strong commitments on corporate governance , with a majority of independent directors, abandoning previous practices of the company controlled by the Benjumea family

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