Spain’s Abengoa has voluntarily requested to start bankruptcy proceedings, as its creditors have not consented to extend the deadline to close and implement a restructuring agreement.
The Seville-based company has sent a statement to the Spanish National Securities Market Commission (CNMV) informing the supervisory body, stating that the decision is “the most appropriate to safeguard the interests of the company and its creditors”.
Until last February 19th, the deadline to close an agreement had repeatedly been extended, while the consent needed was obtained each time the deadline was postponed. Meanwhile, the company was seeking alternatives given the Regional Government of Andalusia will not contribute 20 million euros.
The company’s Board of Directors has said there are “increasing difficulties to reach a solution that pleases all stakeholders, with, up to now, conflicting positions”.
In this regard, it has emphasised its commitment to “seeking alternatives” that avoid the unfeasibility of the subsidiaries that carry out the group’s activities, and therefore, preserve jobs and try to minimise the loss of value.
To that effect, Abengoa has requested from “all those that have an interest in the company and its group, full collaboration to try to avoid definite damages”.
Last Monday the company’s Board of Directors announced it would meet immediately; since consent had not been renewed to extend the deadline, the restructuring agreement was automatically terminated, so the financing operation could no longer be pursued.