Troubled Spanish engineering and renewables group Abengoa SA (BME:ABG) announced today it has reached a debt restructuring and recapitalisation agreement with a group of investors and creditors.
The company, which since November 2015 has been trying to avoid Spain’s largest bankruptcy, has agreed a EUR-1.17-billion (USD 1.3bn) injection from investors such as Centerbridge Partners LP, the DE Shaw Group, Elliott Management, KKR Credit and Oaktree Capital Management LP. In exchange they get 50% in the company post-restructuring.
Abengoa will also obtain EUR 307 million in new financial guarantees, it said in a filing with market regulator CNMV. The lenders include Banco Popular, Banco Santander, Bankia, CaixaBank and Credit Agricole Corporate and Investment Bank (CA-CIB).
It is unclear whether the group has received the required support from 75% of its creditors for the deal. Abengoa has time until October 28 to get their backing, after the initial deadline was pushed back earlier this year.
Overall, new investors and creditors are expected to hold a combined stake of between 90% and 95% in the new Abengoa.