Publications

Abengoa Financial Restructuring Agreement Proposal

Abengoa Financial Restructuring Agreement Proposal

  • 18/03/2016

On March 16, 2016, Abengoa has submitted a financial restructuring proposal to the Bank Coordinating Committee, composed by Banco Santander, CaixaBank, Bankia, Banco Popular, Banco Sabadell, HSBC and Credit Agricole, and to the Bond holders Group, in order to avoid Abengoa’s insolvency filing before March 27. The restructuring proposal is based firstly on the obtaining of new money to re-invigorate the company, and secondly, on a debt reduction of 70% of the affected debt.

On one hand, new cash needs would be defrayed by new money facility of €1,500 million (additional €300 million to be raised if the required €800 million of bonding lines is not committed by the time of closing), new bonding lines of €800 million and roll-over money of €231 million. New money providers and new bonding providers will obtain 55% and 5% of post reorganization equity respectively. Regarding bonding lines, it must be mentioned that existing providers have no option to provide new bonding or roll-over existing bonding commitments. Nevertheless new bonding option is also available to other entities. All that new money has a favorable regime according to the Spanish Insolvency Act (the 100% of cash revenue granted within the framework of the refinancing agreement will be considered as credits against the estate).

On the other hand, the restructuring agreement entails a debt reduction by the creditors of 70% of the affected debt (€9.306m) which is the corporate debts that has no specific collateral or structural priority, such as syndicated loan, other corporate borrowings, notes and bonds, non-recourse debt in process, confirming lines, overdue derivatives and secured financing. That debt reduction supposes that in exchange the creditors will obtain the 35% of post reorganization equity.

With all that, the New Abengoa equity will be distributed amongst current shareholders who will maintain 5% of post reorganization equity; new money lenders with a 55%; old debt creditors, with a 35%; and for ending, new bonding line providers with a 5%.

The proposed financial restructuring agreement must be approved and closed by majority of 60% of the financial creditors before the 27th of March to avoid being forced to file for insolvency before the Corporate Court.

For further clarifications, please do not hesitate to contact us.

If you want to download Abengoa’s proposal, please click here.

"JAUSAS worked hard and made a good impression, I think they did their job well," reports one satisfied interviewee.

CHAMBERS & PARTNERS (2018)

Clients describe the team as "very good, quick, responsive and professional."

CHAMBERS & PARTNERS (2018)

The team is praised by clients for its "knowledge of insolvency matters and focus on finding solutions."

CHAMBERS & PARTNERS (2018)

The lawyers are "able to co-ordinate the work with firms abroad to make sure it goes smoothly," and goes on to highlight the firm's "reasonable fees, even in situations with partner involvement."

CHAMBERS & PARTNERS (2018)

"The team's ability to focus on the matters stands out. The lawyers understand the business and combine this with a high level of technical expertise." Another client enthuses: "We really enjoy working with them. The service is excellent."

CHAMBERS & PARTNERS (2018)