Abengoa reaches agreement with creditors to save the company – Trade

The Spanish group Abengoa and its creditors reached an agreement on a plan to save the builder group of bankruptcy. The idea is to open lines of credit of 1,200 million euros Abengoa and renew urgent loans that have been giving banks and bondholders in recent months. Existing shareholders will remain with 5% of the new company and the Benjumea family with 2.5%.

According to the Spanish newspaper Expansion, the company handles urgent loans for $ 300 million, so the company will end up with new debt of US $ 1,500 million under similar conditions. 5% annual interest plus 4% open and 9% to maturity

If you cancel in advance within the first two years, a penalty of 5% of the remaining capital will apply. Banks and bondholders participate in these credit lines receive up to 55% of the New Abengoa .

From now on, they will start the process to activate the plan. First, it must be approved by at least 75% of the lending mass. The representatives of the creditors hope to achieve this approval over the next two weeks to present the plan before the judge on March 28, the deadline to avoid bankruptcy.

In addition, the plan must be approved by the board of Abengoa . As no time to convene before this date, the judge will be asked a few days later for the plan to ratify the assembly. After learning of the agreement, Abengoa’s shares plummet 14%, although the titles accumulated appreciation of 145% in three days.

Another 40% of the New Abengoa distribute to banks and bondholders to assume squeezes on corporate debt group, of more than 9,000 million. Taketh has been estimated at 70%. 40% received by creditors this removes 35% correspond to the owners of proper debt and 5% owners guarantees.

The remaining 5% stake in the new Abengoa , which only have a single type shares, with equal rights, be allocated to existing shareholders of the group, including the Benjumea family. In the future, and only if Abengoa repays all debt, would receive up to 10%.

The Benjumea family, along with other partners, currently controls 51% of the voting rights through Corporate investment. According to the plan, they will stay with 2.5% of the New Abengoa . If the group pay all debt, could recover up to 5%. The Benjumea family has had to soften in recent weeks his position to seal the pact, since initially sought to control 12.5% ​​of the capital and move to 30% if the plan was successful.