Majority of lenders greenlight Abengoa’s standstill contract

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Majority of lenders greenlight Abengoa’s standstill contract

Abengoa, a Spanish multinational corporation, which includes companies in the sectors of energy, telecommunications, transportation, and environment, has recently presented the homologation of the standstill contract which has garnered support from 75.04 % of the company's lenders.

The objective is that the conditions of the contract will be applied to all lenders. Abengoa passes the agreement with the support of 15.04 % more than the required 60 % of the lenders in order to approve the restructuring plan.

The standstill contract will permit the company to exercise certain rights for resolution and early maturity of financing. This will allow the company to reach 75 % of adhesion needed to pass the final plan.

In parallel, Abengoa will also present as part of their restructuring plan for the company the plan to file Chapter 11 for its affiliates in the United States and Chapter 15 for all affiliates with the end goal to apply protection and a homologation of the agreement in the US.

This key step in the restructuring process of Abengoa will permit the company to complete the financial viability plan that has already been accepted by lenders in order to stabilize its business in the energy and environmental sectors.

As we have reported, In November 2015 Abengoa initiated a pre-insolvency proceedings after Gonvarri Steel Industries decided not to make a planned up to €350 million (US$389.5 million) investment in the company. The firm has been protected under the Spanish Insolvency Law since then for a period of 4 months which is bout to end.

The company financial advisors hired for the restructuring plan were Alvarez & Marsal and Lazard, while the creditors’ financial advisors were KPMG and Houlihan Lokey.

List of country news

Country news

  • March 29, 2016

    Gipuzkoa to tender waste-to-energy concession

    The government of Gipuzkoa, Spain, has recently approved legal changes to launch a tender process to develop a waste-to-energy plant through the PPP model. Read more
  • March 15, 2016

    Abengoa presents its Business Plan and Financial Restructuring Proposal

    Abengoa will hold a conference call on Wednesday, March 16th 2016 at 3:30 pm Madrid time, 9:30 am New York time, to provide all lenders with a general overview of the business plan and the proposed financial restructuring plan. Read more
  • March 15, 2016

    Saeta Yield to acquire CSP assets in Spain

    The Board of Directors of Saeta Yield has approved the acquisition of two 49.9 MW solar thermal power plants from Bow Power, a subsidiary of ACS Group and Global Infrastructure Partners, for an amount of approximately US$132 million. Read more
  • March 03, 2016

    European investors to acquire a major wind farm portfolio in northern Spain

    Corporación Masaveu, through its investment arm Céfiro, has reached an agreement for the acquisition of Borawind wind assets from the London based Bridgepoint. Read more
  • February 25, 2016

    Iberdrola to invest €24 billion in 2016-2020

    According to the new Outlook presented on 24 February by Iberdrola, the company is to invest €24 billion (US$26.4 billion) in 2016 - 2020. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.