Abengoa Bonds Tumble as Recourse Blur Triggers Funding Concern

Abengoa SA’s bonds fell to a record as confusion over the degree of security offered to investors on some of its debt triggered concern the Spanish company will find it difficult to refinance maturing bonds.

Bondholders say they understood $630 million of high-yield notes in euros and dollars issued in September were so-called recourse debt, which allows creditors to seek claims directly from the company in case of default. The developer of solar-thermal power plants said the notes were accounted for as non-recourse, which allows claims only on collateral assets, when it reported earnings this week.