MADRID, Apr 5 (Reuters) – The Spanish engineering and renewable energy company Abengoa reported that the deadline for obtaining the support of suppliers to reach a debt restructuring agreement has been extended to May 7.
According to the statement sent to the Spanish stock market supervisor, the extension of the term had the “majority” support of the suppliers with whom the group has debts.
In mid-March, the group indicated that its holding company Abenewco 1 had requested a package of temporary public aid worth 249 million euros (297 million dollars) from the Spanish State Industrial Participation Company (SEPI), in an attempt to stay afloat while evaluating a takeover offer from TerraMar Capital LLC.
Parent company Abengoa announced in February that it had decided to voluntarily request the bankruptcy after its creditors refused to extend the deadline to negotiate a restructuring agreement.
Abenewco1, which owns most of the assets and liabilities of its parent and where most of its 13,500 employees work, is not part of the insolvency proceedings.
A restructuring proposal to deal with Abengoa’s mountain of € 6 billion ($ 7.3 billion) of debt fell apart after the Junta de Andalucía withdrew a € 20 million financing offer as part of the global agreement. .
The Sevillian company went into significant debt during the previous decade to finance an aggressive expansion towards clean energy from its traditional infrastructure projects.
(Information from Tomás Cobos, edited by Michael Susin)