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Spain’s Abengoa seeks for pre-insolvency protection with debts above €25 billion

30/11/2015
Abengoa, one of the biggest Spanish quoted companies, said on Thursday it has entered into pre-insolvency protection in order to proceed to a debt restructuring with its financial creditors. Abengoa is struggling under about €25 billion ($26.5 billion) of debt. Over €20 million are from financial institutions and, according to the information available, the list of creditors includes more than 200 banks and financial companies all over the world. Discussions are expe... Abengoa, one of the biggest Spanish quoted companies, said on Thursday it has entered into pre-insolvency protection in order to proceed to a debt restructuring with its financial creditors. Abengoa is struggling under about €25 billion ($26.5 billion) of debt. Over €20 million are from financial institutions and, according to the information available, the list of creditors includes more than 200 banks and financial companies all over the world. Discussions are expected to be tough and sophisticated and may last up to a maximum of 4 months where it is advisable to have an active position. JAUSAS is one of the Spanish leading law firms providing legal advice in restructuring and insolvency proceedings and we have a large experience in complex situations like this kind, involving many domestic and international stakeholders. Thanks to this, we are in the position to give the best advice in order to any affected party. Abengoa (http://www.abengoa.es/web/en/index3.html) is a Spanish renewable-energy developer with a large international activity and it is listed in Spain and in the US (its shares are admitted to official trading in the Nasdaq). Abengoa applies technology solutions for sustainable development in the energy and environment sectors. Its business is structured around three activities: engineering and construction (the most important one), concession-type infrastructures and industrial production. Under Spanish Insolvency Law, pre-insolvency proceedings allow debtors to avoid filing for insolvency for a maximum period of 4 months while they negotiate with their creditors. Three possible solutions could be discussed: an out-of-court refinancing agreement, an early composition agreement or an out-of-court payment agreement. During the pre-insolvency proceeding, creditors are not allowed to request Abengoa's bankruptcy nor to enforce their claims. If your company or any of your clients is affected by Abengoa’s situation, please do not hesitate to contact Agustín Bou (abou@jausaslegal.com), head of the Restructuring and Insolvency Department at JAUSAS.

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