Tag: bondholds

21 January 2016 – Expansión

Abengoa is getting ready to receive a lifeline of between €250 million and €300 million, which would enable it to continue operating until 28 March, the deadline for its pre-bankruptcy phase, when it plans to launch its viability plan.

The injection of funds will come from two sources: 1) a loan from its bondholders; and 2) from the sale of assets, above all, some of the jewels in its real estate crown, such as its former headquarters in Sevilla.

Abengoa is finalising an agreement with its bondholders whereby they will grant it a loan amounting to between €150 million and €170 million. The details of the agreement, such as the term and tranches of the facility, are currently being finalised. In addition, Abengoa is finalising the sale of assets worth between €100 million and €150 million, including a renewable energy facility and above all, several of its properties. One of those includes its former headquarters on Avenida de la Buharia in Sevilla and the building it owns in Madrid, on General Martínez Campos. The former, located in a prime area, is one of the most iconic buildings in the city of Sevilla. Abengoa’s objective is that its board will approve its viability plan next week.

Discounts of 70%

In addition to the mass sale of assets, the viability plan will include a significant reduction in the group’s debt. Abengoa is negotiating with its banks and bondholders regarding a discount and the capitalisation of loans representing up to 70% of its debt. The aim is to arrive at a debt balance of less than €3,000 million.

Original story: Expansión (by M.Á.Patiño)

Translation: Carmel Drake