According to the U.S. Bankruptcy Court docket, Seville, Spain-based Agengoa and more than 20 affiliated Debtors filed for Chapter 15 protection in Wilmington, DE.
Concurrent with the Chapter 15 filing, the Company announced, “homologation of the standstill contract which has garnered support from 75.04 % of the company’s lenders.” A corporate release explains, “Abengoa passes the agreement with the support of 15.04 % more than the required 60% of the lenders in order to approve the restructuring plan….In parallel, Abengoa will also present as part of their restructuring plan for the company the plan to file Chapter 11 for its affiliates in the United States and Chapter 15 for all affiliates with the end goal to apply protection and a homologation of the agreement in the US. This key step in the restructuring process of Abengoa and will permit the company to complete the Financial Viability Plan that has already been accepted by lenders in order to stabilize business and protect its leadership in the energy and environmental sectors.”
Documents filed with the U.S. Bankruptcy Court further note, “As contemplated by the Standstill Agreement, the Foreign Debtors seek cross-border recognition of the Spanish Proceeding to extend the Standstill Agreement with respect to the Foreign Debtors within the territorial jurisdiction of the United States of America.”
Abengoa adds, “During 2015, various factors, such as an insufficient upswing in the market in which the Abengoa Group operates and the difficulty of obtaining financing, precluded compliance with the company’s business plan, which caused imbalances in cash flow.”
This Chapter 15 filing follows the February 24, 2016 Chapter 11 filing of Abengoa Bioenergy U.S. Holding, which is a subsidiary of Abengoa Bioenergy Corporation. Abengoa Bioenergy Corporation is a subsidiary of Abengoa, S.A.
The Company, which provides sustainable energy solutions by generating electricity from renewable resources, is represented by R. Craig Martin of DLA Piper.
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