Regulator okays withdrawal of bankruptcy proceedings for Abengoa Peru

Peru’s regulatory agency has approved the request of Spanish engineering and renewables group Abengoa SA (BME:ABG) to discontinue preventive bankruptcy proceedings for its local unit.

Abengoa announced this on Thursday, saying that its Peruvian unit had continued doing business in the South American country in recent months and has been able to normalise its situation with the backing of creditors. The Spanish group noted it has been present in Peru for more than 20 years now and considers the country to be one of its most significant markets.

Abengoa initiated insolvency proceedings at home in November 2015 and in August 2016 reached a debt restructuring and recapitalisation agreement with a group of investors and creditors. In Peru, Abengoa began preventive bankruptcy proceedings in May 2016.

Late last month, about 86% of the financial creditors of Abengoa approved its restructuring agreement and the group then filed it for court clearance. The judicial approval was issued a bit over a week ago.

The group has set November 22 as the date of an extraordinary meeting at which Abengoa’s new shareholder and financial structure will be shaped.

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