Abengoa wins US court approval to exit Chapter 11

Abengoa's global debt restructuring agreement has received support from the Spanish court and its shareholders, though several creditors are still challenging the court validation in Spain. Source: Abengoa

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. 

4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.

Read Next

August 11, 2022
US solar tracker supplier Array Technologies has bounced back from a difficult 2021 by posting strong Q2 2022 financial results mainly due to its acquisition of STI Norland, while upcoming tailwinds could buoy its performance further still moving through the year.
August 10, 2022
Iberdrola has commissioned the 590MW 'Francisco Pizarro' PV project in Extremadura Southwestern Spain, which is Europe’s largest solar plant.
August 10, 2022
OMERS Private Equity has acquired a minority stake in the Arizona-headquartered solar operations & maintenance (O&M) provider NovaSource Power Services.
August 10, 2022
US solar tracker manufacturer FTC Solar has cut its net losses compared with last quarter and Q2 2021 but has seen its revenue collapse, blaming a hostile solar environment in the US that has seen project delays and cancellations, which it said it now hoped was coming to an end.
August 9, 2022
The Public Service Commission of the District of Columbia (DCPSC) has approved a 15-year power purchase agreement (PPA) with renewables developer Invenergy for 73MW of solar power to meet a 5% renewables target for district’s default electricity supply.
August 8, 2022
The Inflation Reduction Act (IRA), which includes US$369 billion in energy security and climate change programmes over the next ten years, passed in the US Senate on Sunday, paving the way for its movement to the House of Representatives and subsequent signing by President Joe Biden.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event