Abengoa, the Spanish renewables company, on Thursday announced a deal with its creditors that staves off the threat of bankruptcy and involves €1.17bn in new money and roll-over of existing financing.
The company’s shares rose 13 per cent in morning trading, writes Tobias Buck in Madrid.
Abengoa was forced into insolvency proceedings last November, amid heightened doubts that it could continue to serve its €8.9bn debt pile.
Under the restructuring plan agreed with creditors, the nominal value of the company’s debt will be reduced by 97 per cent. The remaining 3 per cent of debt will be kept with a ten-year maturity, with no annual interest payment or option for capitalisation.
Alternatively, creditors can choose to convert their debt into new equity, with 70 per cent of pre-existing debt converting into 40 per cent of Abengoa’s share capital.
According to a statement to the Spanish stock market regulator, the new funding for Abengoa will come from investors including Abrams Capital, Baupost Group, Canyon Capital Advisors, Centerbridge, D.E. Shaw, Elliott Management, Hayfin Capital, KKR, Oaktree Capital Management and Värde.
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