Spain’s Abengoa wins US bankruptcy court protection

Facebook
Twitter
LinkedIn
Reddit
Email
US Judge Kevin Carey ruled on Wednesday that Abengoa's standstill agreement applies to US creditors. Source: Abengoa

Abengoa, which entered insolvency proceedings last November, has been granted bankruptcy protection under Chapter 15 over the objections of a group of insurance companies who claimed the Spanish renewables company’s talks to restructure billions in debt was unfair to US creditors.

The insurance companies – including Zurich American, AIG and Liberty Mutual – called Abengoa’s ongoing restructuring talks with financial institutions in Spain “manifestly contrary” to US policy because it required them to adhere to a standstill agreement without due process.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

On Wednesday the US bankruptcy court signed off Abengoa’s bid for protection, recognising its restructuring and locking in a pre-insolvency standstill agreement with key creditors that gives the struggling renewable energy company more time to undertake negotiations on debt restructuring. According to the court, Abengoa’s debts total more than €14.6 billion (US$16.48 billion).

The group of insurance companies, which had issued some US$250 million in surety bonds linked to Abengoa’s construction of power plants in the US, had attempted to eschew the court’s recognition of the Spanish proceeding. Regardless, under Chapter 15, the Seville-based energy company receives the automatic stay that prevents creditors from seizing assets and halts lawsuits.

Under Abengoa’s US$112 million viability plan, the company has already made significant headway in divesting assets by selling four PV plants to Vela Energy, and also sold its 20% share in Abu Dhabi CSP plant to Masdar. In addition, the embattled company has received preliminary support from various creditors; with court filings revealing that a group of certain bondholders have considered offering more than US$1 billion in new financing to help kick-start the restructuring process. 

21 May 2024
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 21-22 May 2024, will be our third PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2025 and beyond.
8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 10, 2024
Dallas, Texas USA
Solar Media Events
April 17, 2024
Lisbon, Portugal
Solar Media Events
May 1, 2024
Dallas, Texas
Solar Media Events
May 21, 2024
Napa, USA