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Red lantern for Abengoa. The company announced this Monday that it has not been able to obtain the 20 million euros that the Junta de Andalucía nor a new extension to continue trying to obtain them, the key to closing the refinancing agreed by the company with its creditors.

This has generated that the creditor banks cancel your debt restructuring process and push the company into a critical situation, with a new bankruptcy and bankruptcy on the table. In a communication sent to the Cnmv, Abengoa explains that it has been impossible to continue extending the extension period in order to close the refinancing, because it has not been possible to get these 20 million euros.

“The company informs that the financial creditors have not granted the consents requested by the Company to extend again the deadline for the closing and execution of the restructuring agreement (the” Restructuring Agreement “),” explains the company based in Andalusia.

“Since the aforementioned date and until February 19, the closing period of the operation has been extended since the necessary consents to that effect have been obtained at each possible expiration, the Company having worked, at all times and in parallel, in the search for possible alternatives in view of the non-contribution of 20 million euros for the Junta de Andalucía “.

“However, having not obtained a new consent for the extension of the term, the Restructuring Agreement it has been automatically resolved so that the financing operation on its announced date can no longer be executed “.

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“Since the automatic resolution of the Restructuring Agreement causes that both the consents related to the deferral and waiver of payment of certain interests as well as the waivers and restrictions established in the aforementioned agreement with respect to the current financial and debt instruments of the Company and its group, the Abengoa Board of Directors will immediately hold a session in which, in compliance with its fiduciary duties, it will make the decisions that correspond to it to protect the interests of Abengoa and its group of companies, also keeping in mind all its stakeholders “, it has indicated the company.

On August 6, 2020, the company announced a pre-agreement that represented Abengoa’s third rescue since it entered pre-bankruptcy in 2015. Creditors and public administrations committed to inject more than 500 million between guarantees and liquidity. The Junta de Andalucía committed 20 million, but finally did not inject capital.

During the last weeks, the Group has been negotiating to several bands to obtain these 20 million, essential to close the rescue. Even after negotiating with five funds, Abengoa achieved the commitment of one of them to inject 35 million euros.

However, the ICO would be blocking the rescue because it prefers to wait to sign the rescue until the meeting promoted by several minorities, dated for March 4, is held. In this situation, Abengoa It did not achieve a new deadline to continue postponing the approval of the rescue already agreed with the creditor banks.

This situation opens a new scenario and paves the way for a change in management. The minority who have opposed the bailout want to expel the current president of the Abengoa, Juan Pablo López-Bravo, and the other counselor Margarida Smith with the aim of putting another rescue plan on the table.

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New team

Clemente Fernández, former president of Amper, would be the new CEO proposed by this group. In November they already managed to dismiss the previous council supported by Gonzalo urquijo and they hope to make a similar move again at the Shareholders’ Meeting next week.

However, everything could be precipitated after the cancellation of the rescue plan and the urgent call forl Board of directors. All options are open.

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