Crisis-ridden Spanish renewable energy group Abengoa SA plans to sell its non-core assets, including all its first-generation biofuel plants, as part of a restructuring to avoid becoming Spain’s largest bankruptcy.
The group published an ‘Industrial Viability Plan’ on the website of Spain’s stock market regulatory agency, the Comisíon Nacional del Mercado de Valores, on 16 January, according to the Financial Times.
It said it needed €826M (US$921.98M) in cash this year and €304M next year, not including sales of non-strategic assets. It also needed financial guarantees of €525M this year to develop existing projects.
Abengoa began insolvency proceedings on 23 November and its preliminary bankruptcy protection period ends on 31 March.
The group runs the largest ethanol plant in Europe – a 480M litres/year plant in Rotterdam, plus other plants in Brazil, Spain, France and the USA.
Ethanol Producer magazine said Abengoa had six first-generation ethanol plants in the USA and one cellulosic facility. It had five ethanol plants, one biodiesel plant and one cellulosic demonstration plant in Europe, and three ethanol plants in Brazil.
The company is looking to sell properties in Spain, Germany and the Middle East, including its headquarters in Seville, for around US$163M to pay off immediate debts, and various energy, water and other installations around the world for another US$1.3bn.
Once the non-core assets have been sold, Abengoa is planning to focus on engineering and construction activities.
According to a Reuters report, the total exposure of Spanish and international banks to Abengoa is around US$21.4bn, including financing for projects.