It seems Abengoa has reached an agreement with its main creditors who did not accept the plan (Liberty, Zurich and Exim US) to refinance its existing debt with a new bond issue under the same economic terms as the former senior debt but with a maturity date of six months earlier (up to March 2022).
The amount of the issue would be 142 million euros – the negative impact of 76 million euros included in Abengoa’s 2017 results plus around 66 million euros of commercial and financial debt, guarantees, premiums and expenses. The operation is likely to take place in Vienna (Austria) and requires the green light from the bond holders who did accept the refinancing plan. There will be no debt aquittance.
For Bankinter analysts, the finalising of the agreement would be “good news” as it would put an end to the dispute Abengoa has with the creditors who did not accept the refinancing plan.
We should remember that the company imposed a debt aquittance of 97% and those creditors contested it. The Commercial court No. 2 in Seville said in its ruling last autumn that it was a “disproportionate sacrifice.” Since then, Abengoa has been negotiating the liquidation of the reclaimed debt with the above-mentioned creditors. That said, the risk is still there as Abengoa needs more than 50% of the former creditors to accept the proposed new issue, a decision which they will need to take before May 30.
Meanwhile, the company has won contracts to supply technology and engineering for two thermosolar plants in the People’s Republic of China. The first contract, which is for the company Sepco III, Electric Power Construction Corporation, consists in supplying the technology and developing the engineering for the LuNeng Haixi 50 MW solar thermal tower plant project in the Qinghai province, as well as technical support during the construction. The second contract will be to supply the technology and engineering for the Royal Tech Yumen project for a 50 MW solar thermal parabolic trough plant to be built in the Gansu province.