Abengoa puts almost all the assets of Abenewco 1 up for sale before the SEPI rescue

Abengoa puts almost all the assets of Abenewco 1 up for sale before the SEPI rescue

The company requested 249 million from the public rescue fund while continuing with its divestment plan.

Abengoa headquarters, in a file image.

Abengoa communicated last week the rescue plan for its subsidiary Abenewco 1, the jewel in the company’s crown engineering and renewable energies. This project seeks to avoid the bankruptcy of this company, renegotiate its debt, allow the entry of new investors and be able to become the company that groups the holding company Andalusian.

However, the information to which he has had access invested is discouraging and reflects that all the most important assets of Abenewco 1 they are for sale or have already been disposed of (more than a dozen projects) within the framework of its “amortization or dation in payment of debt with suppliers and other creditors” plan.

The plan you have accessed invested confirms the fear of minority shareholders of Abengoa that for weeks they have been denouncing a scrapping plan of the company to pay the creditor bank part of the 6,000 million that it owes them. This debt corresponds to Abengoanot Abenewco 1 whose liabilities could be around 1,000 million euros, according to the sources consulted.

A process that is being carried out behind the back of the bankruptcy administrator of Abengoa who must be appointed in the coming weeks and which continues in parallel to the request for 249 million euros from SEPI and the entry of the opportunistic fund TerraMarwho has offered 200 million (50 to increase capital and 150 million in loans) to keep 70% of the subsidiary.

Abengoa defends itself by indicating that no movement is taking place in its parent company, which is bankrupt, and that all operations are being carried out under the umbrella of Abenewco 1which is not subjected to any process of these characteristics.

projects for sale

In this way, they have requested the rescue from SEPI within the framework of a restructuring plan to avoid going bankrupt. The problem is that if the sale of all these assets is finally carried out, there will be no structure left, nor practically any valuable asset to be able to undertake the reconstruction of the company that is being requested from SEPI.

Without this muscle it would be totally unfeasible undertake a state rescue with what remains after the scrapped Abenewco 1. In this way, the Provider Planof this subsidiary company of Abengoa consists of twelve projects, as has been confirmed invested.

SPP1 (Hybrid combined cycle-solar plant, 150MW in Algeria) is in the process of being sold with a partner in the asset, still in the early stages. On Ghana (60,000 m3 desalination plant) the project is currently in the process of being sold with two potential buyers and is in the due diligence

On Chennai (India) They have a 100,000 m3 desalination plant that is currently in advanced sale negotiations with a local partner. On the other hand, North III has a deferred amount collection as part of the sale of the Norte III combined cycle plant in Mexico.

On Zapotillo Aqueduct in Mexico It also has a claim against the client for non-compliance with the commitments of the Mexican administrations. The collection of claim to the client is produced by the resignation that he made Abengoa to the concession title of the project.

projects sold

In the same way, unappreciated (contract for exploitation of courts in Catalonia) has already been sold for an amount already partially collected. Regarding litigation and lawsuits in various countries including Kenya, Poland and Spain, claims and arbitration proceedings are at different stages of progress. However, some processes have been delayed due to the Covid 19 pandemic.

As for other assetsSan Antonio Water Systems (water channeling project in the US) has an amount pending collection for the sale of Abengoa’s stake in the project, although it is linked to the refinancing of the debt of the project currently in process. While, Xina Solar One (a 100 megawatt solar thermal plant in South Africa) has already been sold to Engie.

Punta Rieles Unit (penitentiary center in Uruguay) has closed its sale in 2020 and the amount of the sale will be used to repay local debt. ATN3 (transmission line in Peru) has already been sold pending approvals from the Peruvian government.

Khi Solar One (a 50 megawatt solar thermal plant in South Africa) is in the process of being sold while improvement works are being carried out for the optimum operation of the plant.

New offer

Last week Abengoa requested 249 million euros to Support Fund for the Solvency of Strategic Companies of the Spanish Society of Industrial Holdings (SEPI) for your subsidiary Abenewco 1within the framework of the financial debt restructuring plan.

Abengoa also reported the existence of a non-binding offer by a group of investors led by TerraMar Capital LLC (“TerraMar”). Said offer would consist of providing 150 million euros in the form of a loan and 50 million euros in the form of a capital contribution to Abenewco 1 to take over 70% of the company.

However, this newspaper has reported that another company in the energy sector is preparing another offer that could be supported by minority shareholders. According to information confirmed by invested with sources close to the project, the objective is to take over the majority of the company and block the entry of the American opportunistic fund TerraMar Capital.

The sources consulted by this newspaper indicate that this offer would be much higher in value than the proposal for TerraMar to invest 200 million, of which only 50 million would be fresh capital.

Ellsworth Weber