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Abengoa Bankruptcy Liquidation Plan Confirmed

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The U.S. Bankruptcy Court confirmed Abengoa Bioenergy US Holdings’ Third Amended Joint Plans of Liquidation.

As previously reported, “The Plan as currently proposed, including the proposed treatment of the MRA Guarantee Claims, is premised on substantive consolidation and provides Bioenergy General Unsecured Creditors with a substantially higher recovery than they could otherwise expect to receive. The most important consideration for the Holders of the MRA Guarantee Claims was that their entitlement to the $32.5 million.”

In addition, “The proposed settlement allows the Plan Proponents to avoid costly, time consuming, and potentially uncertain litigation, whereby if unsuccessful certain creditors would receive no recovery in 2017 and little, if any recovery in 2018, or even later if the parties engage in protracted litigation. As reflected in the Liquidation Analysis…without the proposed settlement of the MRA Guarantee Claims, most of the available proceeds for distribution to Holders of Bioenergy General Unsecured Claims would have been distributed to the Holders of MRA Guarantee Claims, leaving Holders of Bioenergy General Unsecured Claims with a small fraction of their projected recovery under the Plan as proposed.”

The order states, “Pursuant to section 1123 of the Bankruptcy Code and Bankruptcy Rule 9019, the Cofides Settlement is an integrated compromise and settlement of numerous issues and disputes designed to achieve a beneficial and efficient resolution of these Chapter 11 Cases for all parties in interest…. The Court finds that the relief sought in the Cofides Settlement Motion is an exercise of sound business judgment, and is in the best interests of the Debtors, the Debtors’ estates, creditors, and all parties in interest, and that the legal and factual bases set forth in the Cofides Settlement Motion establish just cause for the relief granted herein, and that the Cofides Settlement Motion satisfies rules 2002 and 9019 of the Federal Rules of Bankruptcy Procedure.”

This renewable energy plant operator filed for Chapter 11 protection on February 24, 2016, listing $648 million in pre-petition assets.

Read more Abengoa bankruptcy news.

The post Abengoa Bankruptcy Liquidation Plan Confirmed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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