Abengoa achieves historical record of applications for its bankruptcy administration

Abengoa achieves historical record of applications for its bankruptcy administration

The Sevillian company has aroused the interest of almost fifty firms, but only three will pass the court before being presented to the judge.

Abengoa sign at its headquarters in Seville.

the brittle Abengoa has become a disputed trophy. Up to 45 firms have submitted to the National Securities Market Commission (CNMV) their proposal for acquire the bankruptcy administration of the Sevillian company. This is a figure never before achieved by a listed company that had entered into this legal procedure.

The president of the CNMV, Rodrigo Buenaventura, explained this Wednesday that Abengoa’s bankruptcy process “has broken the record” with these 45 expressions of interest. However, only three will pass the filter that the financial supervisor is already beginning to apply and from which he hopes to have results “in the next few days.”

In this sense, Buenaventura explained that the “documentation is extensive”, but that the “evaluation process” has begun of each of the proposals. In this sense, the current regulations require that the CNMV present a short list to the judge instructing the bankruptcy of a listed company.

round of contacts

Bonaventure has promised “the greatest speed” in this process so that the competition can go ahead and seek a viability formula for the Sevillian company. In this sense, the company’s creditors and shareholders continue to intensifying contacts to try to best safeguard their interests in the deep restructuring to which the company must undergo, suspended from trading on the stock market since last July 14.

In this way, Abengoa Sharesthe group of minority shareholders of the company led by Clement Fernandez, has maintained approaches with the creditor bank, according to Invertia, with the aim of finding common ground to pave the way before the arrival of the bankruptcy administrator whose name is being decided at the moment.

The proposal of the minority would go through unlock your entry into company management, which was frustrated by the suspension of the extraordinary shareholders’ meeting that they had managed to call. The blocking of this assembly had its origin precisely in the declaration of the contest, since the judge understood that there were not enough circumstances of visibility on the future of the company how to celebrate it.

The ultimate goal is to avoid an endless judicial war with resources crossed by the parties, added to the risk that 12,000 jobs end without continuity. And all this without losing sight of the problems that the banks would have to collect debts for more than 6,000 million euros.

debt and employment

In this sense, the creditor bank He does not look favorably on a 90% haircut like the one raised by the minority a few weeks ago. What does seem to be more consensus is to request a rescue from SEPI of about 250 million euros, to have the necessary liquidity to restructure the company.

Until now, the pool bank had slipped the possibility of supporting the current managers led by the current president of Abengoa, Juan Pablo Lopez-Bravo, but reality indicates that minority shareholders have the support of the necessary capital so that they can assume the management of the company.

Meanwhile, workers at the infrastructure and energy company are planning demonstrations on March 19. The objective is that their claims for the collection of delayed payroll and the maintenance of jobs are heard throughout the center of Seville, with a planned route that goes from Plaza Nueva to the Palacio de San Telmo, seat of the Presidency of the Junta de Andalucía.

Ellsworth Weber