Troubled Spanish renewable energy and ethanol producer Abengoa SA presented an updated restructuring plan on 16 August – including US$1.3bn in new loans – that 75% of its creditors must approve before 28 October if it is to avoid becoming Spain’s largest ever bankruptcy.
The 75% level of creditor support is required by Spanish law after the Commercial Court Number 2 of Seville granted a seven-month extension last April for the Seville-based multinational to avoid bankruptcy.
In its 16 August presentation, Abengoa said it had completed a critical milestone in its restructuring process after first presenting a restructuring proposal on 16 March.
It said it had reached agreement on 10 August with its Bank Coordination Committee and the New Money Investor Group to secure US$1.3bn in new loans and €307M of bonding lines to enable it to “reinitiate normalised operations”.
It had also offered creditors to convert 70% of outstanding debt into equity, and refinance the remaining debt over six years, in return for 40% ownership of the restructured company. The company’s founding family would also give up another 50% in the company to new investors, Reuters said.
A restructuring would apply to the whole of the Abengoa group, which has operations in ethanol, renewable energy and engineering.
Abengoa still has two ethanol plants running in Spain – Cartagena with a capacity of 151,000m3/year and La Coruña with a capacity of 197,000m3/year – and one 300,000m3/year plant in the Lacq region of France, according to Platts.
Its 240,000m3/year ethanol plant in Spain’s Salamanca is currently closed, along with its largest European facility – a 577,000m3/year plant in Rotterdam.
Brussels-based ethanol production and trading company Alcogroup and its partners announced in June that they had agreed to buy the Rotterdam plant (see Biofuel News, OFI July/August 2016).
In the USA, Abengoa is in the process of auctioning off four of its ethanol facilities.