Delta Alternative Management, a French investment firm and creditor to Abengoa SA, said it’s forming a group of small bondholders to participate in restructuring talks with the Spanish renewable-energy company.

The firm is talking with about six U.S. and U.K. hedge funds and being advised by law firm Brown Rudnick and consultant Talbot Hughes McKillop, according to a statement. It plans to lobby for bondholder rights separately from an existing group of noteholders including BlackRock Inc., Invesco and AIG, that’s advised by Houlihan Lokey Inc.

Delta is concerned that negotiations have been dominated by large investors, particularly bank lenders seeking more favorable treatment in a restructuring, according to the statement. It’s seeking a debt-for-equity swap, subject to the company’s business plan, and asked other investors to get in touch.

Abengoa, which has 8.9 billion euros ($9.7 billion) of gross borrowings, is trying to negotiate a debt restructuring after filing for preliminary creditor protection in November. The Seville-based company is seeking to shrink its balance sheet by about 30 percent as part of a viability plan to be presented to creditors, a person familiar with the matter told Bloomberg News last week.

The company last month received a 106 million euro credit line from banks including Banco Santander SA and HSBC Holdings Plc to help meet its obligations for the year. The loan was backed by shares in Abengoa Yield Plc, the power plant operator created by Abengoa that trades in the U.S.

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