Abengoa’s main creditors finally agree on the rescue – Investing.com Spain

By Jose Elias Rodriguez

MADRID (Reuters) – More than a year after the failed capital increase opened the box of thunder in Abengoa (MC :), major banks and bondholders the Seville company announced a rescue plan will need the initialling of 75 percent of its creditors if the company wants to avoid the biggest bankruptcy in the history of Spain.

Finally funds to recapitalize the company will be 1,170 million euros, plus guarantees amounting to 307 million euros, in line with estimates of between 1,500 and 1,800 million that had been initially handled.

However, unlike the initial plan of feasibility announced in March, Abengoa does not indicate this time what percentage of the debt represented by these large creditors and does not intend to elaborate on the updated plan to the next Tuesday in a conference call.

In the original plan, the initial support was 40 percent of the debt and the extension of six months that the judge handling the preconcurso granted in April had to gather support by 60 percent.

nEW STRUCTURE oF DEBT aND CAPITAL

in a significant event sent early Thursday, Abengoa said of the new loans granted have already been anticipated by its banks and bondholders in the last year, amid strong liquidity crisis experienced by the group of engineering and renewable for many months.

Abengoa said a group of funds -Abrams Capital, Baupost group, Canyon Capital Advisors, Centerbridge Partners, DE Shaw Group, Elliott Management, Hayfin Capital Management, KKR (NYSE Credit, Oaktree Capital Management and Värd- have already pledged funding and that the guarantees were already insured by the bank.

After restructuring, creditors of Abengoa could reach up to 95 percent of the capital of the company, leaving at least 5 percent remaining in the hands of current shareholders as Corporate Investment, the holding company that groups the founding families of Abengoa. The latter, could add an additional 5 percent if within 8 years the company puts all its debts.

Funding has three sections, highlighting a credit of 945 million due to nearly four years, secured by assets such as cogeneration plant A3T and participation in the crown jewel of the group, the US subsidiary Atlantic Yield. The signing of this loan would be entitled to receive 30 percent of the new capital.

In addition, there is another stretch to four years for 194.5 million euros and backed with engineering assets in exchange for a 15 percent of the capital, and a third of 30 million with the same maturity to secure the additional funding required to complete the construction of the aforementioned Mexican plant. This would be entitled to a 5 percent stake.

On the other hand, those who provide the guarantees would also receive 5 percent.

The other creditors may join the plan rescue capitalizing 70 percent of the debt and refinanced the rest within a period of up to six years, in exchange for 40 percent of the capital of the new Abengoa.

That, or take a haircut of 97 percent and 3 percent receive debt at 10 years, without interest or capitalization possibilities, Abengoa said in its evening news.

Abengoa did not say when the bailout funds will be released, although it is not expected to occur until then.

Meanwhile, the Seville company still suffers from a narrowness cash even compromise payroll workers, while still undergoing a process of restructuring and massive sale of assets to lighten its cost structure.

MORE DETAILS, WHILE STILL oN TUESDAY COUNTDOWN

Abengoa advisers (Lazard (NYSE and Cortés Abogados), banks (KPMG) and bondholders (Houlihan Lokey) explain the updated terms of the viability plan in a conference call on Tuesday August 16 at 1800 hours.

in the agreement in principle announced in March, the intention of the restructuring was to cut the debt by almost half from 9,395 million at the end of 2015 and that the company empezase to be operationally profitable starting next year.

After the agreement a phase in which the remaining up to creditors to reach opens the mandatory 75 percent of declared about 9,500 million- must give its approval before the end of October when the deadline that the court gave Seville the company in April to renegotiate your debts.

the delay in announcing the plan, which some sources expected for July, still requires more urgency in the next steps of the particular group of Sevillian via crucis.

The company will have to hurry to get at least three quarters of the financial liability from attaching to the plan and then its shareholders bless him at a meeting that is expected to be held in September.

Abengoa said Thursday that the board would consider to shareholders unify the current dual-listed company structure, but noted that “this is not a necessary condition of the restructuring agreement.”

Thanks to this dual structure, the founding families have controlled tightly company despite not reach 30 percent of the capital and they said some sources told Reuters, some creditors had demanded their removal and application most corporate governance controls.

with all the approvals and underarm, be submitted by October 29 the application for approval of debt to the judge who granted the group an extension after this consiguiese the necessary support.

at 0948 local time, volatile Abengoa B shares rose 3 percent to 0.249 euros.