Abengoa reaches an agreement to restructure its debt – Expansion MX

SEVILLA (EFE) –

The Spanish multinational Abengoa reached an agreement with a group of investors and creditors, which include banks and bondholders to restructure its debt and recapitalization.

creditors of Abengoa will control 90% of the capital of the company once the financial restructuring plan, which foresees an injection of “new money” of 1.169 million euros is started.

in a statement to the Spanish National Securities Market Commission, said the agreement with Abengoa funds, banks and bondholders to restructure the group, which was in preconcurso of creditors since November 2015.

This full commitment to the preliminary agreement announced by the group’s president, Antonio Fornieles, in late June, in which an injection of some 1,200 million euros was estimated.

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After the closing of the agreement, the company must obtain the explicit support for the plan from the holders of more than 75% of the debt, and some adhesions that will have to be validated by the judge, and bring the pact to the general meeting of shareholders.

All this must occur before the end of October, when the deadline to leave the preconcurso.

the agreement includes refinancing loans received in recent months by a series of funds as Abrams Capital, the Baupost Group, Canyon Capital Advisors, Centerbridge Partners, the DE Shaw Group, Elliott Management, Hayfin Capital Management, KKR Credit, Oaktree Capital Management and Varde, will receive in exchange 50% stake in Abengoa.

As for the debt restructuring, the agreement provides a rebate of 97% and the refinancing of the remaining 10 years free of interest and without any possibility of capitalization 3%.

once this process is complete, the current shareholders of Abengoa will see reduced its stake 5% of capital, a percentage that could be extended by a maximum of another 5% in the case of all new loans are returned within eight years.