Creditors give other 7 months Abengoa to avoid bankruptcy – swissinfo.ch

The Spanish giant of renewable energy Abengoa announced Monday having obtained within seven months most of its creditors to restructure and avoid bankruptcy, which would be the largest bankruptcy ever presented in Spain.

the Spanish company, in great difficulties for several months, had until Monday night to present an agreement with at least 60% of those who are holding the group’s debt in a commercial court in Seville .

a 75.04% of Abengoa’s creditors accepted the proposal, thus avoiding bankruptcy. “It is a key step in the process of restructuring Abengoa and allows the company to carry out its plan for economic and financial viability” according to a company statement.

The Spanish group had proposed in mid March creditors to sign a clause called “standstill” (freezing process), which provides for a suspension of the anticipated sale of its shares for a period of seven months.

“the contract standby or ‘standstill’ allow the company to suspend the exercise of certain rights of termination and early repayment of loans. Thus, Abengoa can achieve 75% of the necessary measures to obtain the final agreement adhesions, “the statement said.

The company ended 2015 with a debt of 9,400 million euros (10,400 million dollars). The plan foresees a reduction of this debt to 4,900 million euros. In late November, Abengoa declared preconcurso creditors, giving four months to resolve their plight.

The group, with 28,700 employees and a significant presence in the United States and Latin America, presented in early February an adjustment plan that includes reducing its size and transfer assets to focus on engineering and construction.

– a process that includes the US –

“Abengoa also present as part of the restructuring of the company, requests for Chapter 11, for those companies that are present in USA, and Chapter 15 for all societies, with the aim of extending protection and approval of the agreement in this country, “he said in reference to the figures of corporate restructuring in the United States.

the group boasted of being an economic miracle that had managed to go from being a family company that managed electrical installations in the desolate post-war Spain in the 1940s, the company that built the largest solar plant in the world in the United United.

But the multinational, which reached record sales of 5,500 million euros a year and profits of 207 million, was the victim of excessive growth and in November presented a preconcurso creditors, with an initial period of four months to overcome the crisis.

The Spanish company, which had even managed praises US President Barack Obama, when he built his solar power plant in the Arizona desert, and recognized the need for urgent restructuring.

“Abengoa is already working hard to meet the objectives set out in the re-sizing of the company, providing it with the necessary financial security and provide leadership and management to enable the development of operational and financial potential the company, “the company said.