Spanish Abengoa reaches recapitalization agreement to avoid bankruptcy – Management Journal

After a marathon negotiations with banks and hedge funds , Abengoa said the Comisión Nacional del Mercado de Valores of Spain that funding agreed amounts to 1.169 million euros.

Abengoa had been put in preconcurso creditors late last November.

Madrid ( AFP ) .- the Spanish renewable energy group Abengoa, threatened bankruptcy, today announced the conclusion of an agreement recapitalization and debt restructuring with its creditors and ten mutual funds, providing an injection of 655 million euros of fresh money.

after a marathon negotiations with banks and “hedge funds”, the multinational based in Seville told the Comisión Nacional del Mercado de Valores ( CNMV ) that the funding agreed amounts to 1.169 million euros.

This amount includes 515 million has already agreed to the company by way of refinancing its debt in three operations carried past September, December and March.

in this way, the contribution of fresh money amounts to almost 655 million. The agreement includes 30 million euros for possible contingencies in the A3T Mexico project of ecogeneración of electrical and thermal energy.

Abengoa had been put in preconcurso creditors late last November, after accusing the consequences of accelerated growth abroad is not always in line with expectations.

under the architecture of the financial agreement, 100% of existing shareholders, among which is the Benjumea family, founder of the company, it will then hold 5% of the capital.

on the other hand, subscribers banks (Banco Popular, Banco Santander, Bankia, Credit Agricole and CaixaBank) will have a 5% stake, the ten investment funds 50% and other creditors 40%. The latter must accept a haircut of 70% of the debt in power.

“hedge funds” signatories are 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 Värde.

in March, the Spanish justice he agreed within seven months Abengoa restructure and avoid bankruptcy.

next week, the plan will be presented to other creditors and an extraordinary shareholders meeting, which should take place by mid-September will be convened.

With this, at the end of October at the latest is expected to submit to justice the new agreement, to be valid must have compulsorily with the ratification of 75% of creditors.

Since the beginning of 2016, the group reduced its staff, who went from almost 22.000 to 17.500 employees, most of them in Brazil to divest its activities in the area of ​​biofuels.

the Spanish company, which emerged as a family company and in recent years had rapidly expanded internationally, especially in Latin America, recorded losses of 1,200 million euros in 2015.

in the first quarter of 2016 red balance was 340 million euros.