Abengoa’s minority shareholders appeal the annulment of the Extraordinary Meeting and request that it be reconvened

Abengoa’s minority shareholders appeal the annulment of the Extraordinary Meeting and request that it be reconvened

The group led by Clemente Fernández will present the appeal in the Seville courts this Tuesday.

Clemente Fernández, leader of the minorities of Abengoa.

The minority shareholders of Abengoa they are willing to fight to prevent the company from falling into the hands of bank creditors. To do this, your first move will be to file an appeal against the decision of the Third Section of the Commercial Court of Instance of Seville to suspend the Extraordinary Shareholders’ Meeting convened for this Thursday, March 4.

As confirmed invested with sources from this group that represents more than 16% of the shareholders of Abengoaat this moment the legal figure of this requirement is being finalized to present it this Tuesday.

Minorities maintain that they have enough votes already cast to win the Extraordinary Meeting and remove the current president Juan Pablo Lopez-Bravo and counselor Margarida Smith. They would be replaced by their own advisers, paving the presidency to Clement Fernandez, leader of this group.

Therefore, the objective of this new resource is to restore this Board as soon as possible either by means of a precautionary measure or by annulling the part of the car that suspended this meeting. Last Friday, the court accepted the declaration of the company in voluntary bankruptcy, but also suspended the Extraordinary Shareholders’ Meeting.

The judge indicated that there is no clarity regarding the direction of the company after the bankruptcy and, indicated, prefers to wait for the insolvency administrator to be appointed. It is expected that he will disembark within a month and take the reins of the company.

lock of board

Faced with this decision, the minority will argue in their writing, as this newspaper has been able to confirm, that commercial judges have never made decisions that affect social issues and that The Board of Directors is in a “precarious” state, so it needs new members to continue operating.

They also maintain that before the Meeting was cancelled, at least 20% of the votes had already been cast and that it was already guaranteed that Clement Fernandezthe former president of Amper, was elected as the new president of Abengoa.

In conversation with this newspaper, the Clement Fernandez He maintains that there are already precedents in the Spanish justice that give reason to this type of resources. In 2013 a judge already denied the suspension of the Board of Creditors of Deportivo La Coruña. The magistrate in charge of the case pointed out that the request of the administrators could lead the contest of the A Coruña team “to a dead end”.

The minority consider that it is vital to take control of the company as soon as possible to plan a new orderly rescue plan, together with the bankruptcy administrator which will arrive in the coming weeks. According to reports, the current managers seek to scrap the company before the arrival of this administrator.

In a letter sent to the unions of Abengoa this Monday, the minorities warn that the current managers are preparing the sale of the subsidiary Abenewco 1 to an American investment fund that, apparently, “is going to make an initial offer of 35 million that will be followed by another 30 million for certain works and 100 million to buy financial debt.

Abenewco 1

“That is to say, the offer does not really provide figures that can generate a future for the company since the bulk would not enter the subsidiary. This type of American funds they are capital maximizers, that is, they will not take into account unnecessary people or suppliers for its new structure”, they indicate.

An accusation that is in line with what was published by this newspaper regarding the decision to “get fat” Abenewco 1the subsidiary of Abengoa that brings together the most valuable assets of the company and the only company that could satisfy the requirements of creditors in the face of the 6,000 million debt of the parent company.

invested has confirmed that the objective of the current managers is that Abenewco 1 collect the 1,500 million euros of renewables that Abengoa could enter in the coming weeks due to the litigation with the State presented in 2013. With a Abenewco 1 strong, bank creditors could collect directly from this company that is not bankrupt.

However, from the minority they warn that legally any subsidiary of a bankrupt company could also be considered in this process. This would paralyze any business movement and sale of assets until the arrival of the bankruptcy administrator.

In any case, from both parties it is recognized that we are facing a process that threatens to prosecute and paralyze solutions to try to save a company with 6,000 million in debt and 14,000 employees worldwide, 2,500 in Spain.

Ellsworth Weber