Abengoa wins US court approval to exit Chapter 11



Beleaguered Spanish renewables firm Abengoa has received US court approval to exit its Chapter 11 bankruptcy, according to court records filed on Wednesday.

This news comes after Abengoa was granted bankruptcy protection under Chapter 15 in April. Insolvency proceedings began in November last year, after the company’s share price tumbled by 54% when Gonvarri decided against its former plan to invest in the company.

Now with the freedom to exit bankruptcy, Abengoa is closer to implementing its divestment plan. Under the company’s restructuring agenda, big financiers such as Santander will take equity in exchange for debt. Therefore, Abengoa will retain control of its US businesses due to a US$23 million cash payment by its new bank owners.

Furthermore, the embattled clean energy multinational will deposit funds into a litigation trust to cover it for potential lawsuits, including a separate reserve pool for potential insurer claims.

The restructuring plan dictates that Abengoa’s US creditors will only recover pennies on every dollar of debt which is a better solution that an outright liquidation, according to bankruptcy court judge Kevin Carey.

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

21 May 2024
Understanding the PV module supply to the U.S. market in 2024 & 2025. The conference gathers together developers, independent power producers and module suppliers to the U.S. solar market as well as EPCs, banks, investors, technical advisory and testing & certification specialists.

Read Next

Subscribe to Newsletter

Most Read

Upcoming Events