Guest essay by Eric Worrall
The US Government has formally objected to an attempt by Spanish Renewable Giant Abengoa’s bankrupt US arm to walk out on $130 million of federal loans.
U.S. Objects to Abengoa Bankruptcy-Exit Plan
Energy, Justice departments among agencies seeking at least partial repayment of government investments
The U.S. government, which pumped more than $130 million into Spanish renewable-energy company Abengoa SA’s U.S.-based projects, is asking a federal judge to put the brakes on the company’s plan to exit bankruptcy.
Several federal agencies—including the Energy and Justice departments—are objecting to the bankruptcy-exit plan, demanding changes and at least partial repayment on the government’s investments.
A spokesman for Abengoa couldn’t immediately be reached for comment Thursday on the government’s objections.
Judge Kevin Carey is slated to consider the bankruptcy-exit plan for Abenoga’s primary U.S. subsidiary at a hearing on Tuesday at the U.S. Bankruptcy Court in Wilmington, Del.
The Energy Department had awarded $137 million to fund a total of 11 Abengoa projects over the past 13 years, according to an agency spokeswoman. The department says the funds were intended to help the it meet federal energy policies that promote the production of ethanol and other renewable energy sources.
Read more (paywalled): http://www.wsj.com/articles/u-s-objects-to-abengoa-bankruptcy-exit-plan-1480630625
Abengoa, a multi-billion dollar Spanish renewable giant, is still struggling with unsustainable debts. In March this year the US arm of Abengoa started bankruptcy proceedings.
Spain’s Abengoa Files for Chapter 15 Bankruptcy in U.S.
Renewable energy company in talks with creditors to restructure billions in debt
Abengoa SA has filed for bankruptcy protection in the U.S. as the Spanish energy company continues talks with its banks and bondholders to agree on its plan to restructure billions of dollars in debt.
The renewable energy company, which operates around the world, on Monday night filed for chapter 15 protection, the section of the U.S. bankruptcy code dealing with cross-border insolvencies, in U.S. Bankruptcy Court in Wilmington, Del.
The bankruptcy filing comes after Abengoa struck a deal with key creditors that gives it more time—through Oct. 28—to continue negotiations on restructuring its debts, which court papers show total more than €14.6 billion ($16.48 billion). The company hopes the U.S. bankruptcy will provide extra breathing room for these talks.
It seems likely investors will struggle to get their money back. Abengoa’s head office began bankruptcy proceedings late 2015. Since then there have been various attempts at debt restructuring, but whatever is happening in Spain, at this stage US taxpayers seem unlikely to ever see much of their money back.