Abengoa has informed the Comisión Nacional del Mercado de Valores (CNMV) that Ernst & Young has requested the 3rd section of the Commercial Court of Seville to suspend the powers of the board of directors. E&Y, at the request of the judge, is in charge of the bankruptcy administration of the company (with more than 5 billion in debt).
In addition, E&Y – the insolvency administration – has requested that the members appointed by the minority shareholders (with 21% of the shares) be removed from the highest management body, thus taking away their power within the group.
Until now, it was the parent company, Abegoa SA, which had filed for bankruptcy (on 22 February) and not its subsidiary, Abenewco 1, which is where the most profitable assets are concentrated. However, it is Abenewco 1 on which the company’s refinancing plan, and therefore its rescue as a group, hinges. Although the board of Abenewco 1 worked hand in hand with the parent company, Abengoa’s, insolvency administration, this allowed the subsidiary to negotiate various rescue plans on its own with potential investor groups.
If the Commercial Court of Seville accepts this, the insolvency administrator will now be the only valid interlocutor to determine the future of Abengoa and its subsidiaries, or in any event, to declare the definitive liquidation.
