Abengoa will not complete the partial monetization of the arbitration filed by one of its subsidiaries against Spain for the cut in premiums to renewables applied by the Government in the previous years, after having received a financing offer of up to 50 million euros.
Abengoa has presented its 10 year viability plan. The company anticipates to reach a turnover of 2.86 billion euros in 2023 and 4.202 billion euros in 2028. Moreover, its portfolio of will increase from 1.75 billion euros in 2019 to 4.01 billion euros in 2028, thanks to identified projects, whose value rises to almost 30 billion euros.
Pablo Fernández | A company uses its accounts (balance sheet and profit and loss account) and its annual report to communicate its past peformance and its current situation. But are these accounts a real reflection of the company’s financial health? Abengoa is a case in point.
While acknowledging that Spanish renewable energy and engineering firm Abengoa’s restructuring plan would ease its debt burden, Moody’s has cast doubts over whether it will be successful. Earlier this month, Abengoa reached a debt restructuring deal with its main creditors in an attempt to avoid Spain’s biggest ever bankruptcy. It had been in talks with lenders since November 2015 to reduce its over 9 billion euros debt pile.
Isolux is a Spanish midcap which operates in the construction business and in the maintenance of large infrastructures in over 40 countries. It has been forced to reach an agreement with its principal creditors to avoid bankruptcy.
Fernando Rodríguez | The last executive to leave Abengoa is Jose Dominguez Abascal, executive chairman from the end of 2015, who has resigned from the company’s board. This departure, as well as that of the over 2,000 executives and employees “have hardly affected its share price”, says Renta 4 Banco.
The demise of Abengoa, the Spanish engineering and renewable energy firm, would have been a massive blow for its creditor banks. So the government and the banks have been working on a solution since the company entered pre-insolvency proceedings. The deal agreed this week hands over the majority of Abengoa’s capital to its creditors.
The approval by Abengoa’s board for its viability plan led us to hope that it could be going in the right direction. But as the days pass, the balloon is beginning to deflate and the company, which was the first big Andalusian multinational, is now doing everything it can to avoid being engulfed in Spain’s biggest ever insolvency situation. But it’s not having much success.
Fernando Barciela | Throughout this current year, 99 companies across the world have defaulted, the second highest figure in the decade after the 2009 crisis, according to S&P. Spanish firm Abengoa could be added to the list.
Spanish renewable energy and engineering group Abengoa is close to bankruptcy. The company, which has a debt level of € 6.283 billion, proposed a capital increase of 650 million euros and a financial adjustment. It also tried to negotiate with five banks and Spain’s government for a credit line. Finally, the company agreed to Basque steel maker Gestamp becoming a new shareholder. But this operation has now also failed.