Abengoa Signs Debt Deal to Avoid Spain's Largest Insolvency
- Creditors to provide $2 billion loan in return for 55% stake
- Founding family and other shareholders to be left with 5%
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Abengoa SA announced a debt-restructuring agreement, bolstering efforts to avoid becoming Spain’s largest corporate insolvency.
The renewable-energy company plans to give creditors a 55 percent stake in return for as much as 1.8 billion euros ($2 billion) in loans, it said in a regulatory filing on Thursday. The loans will be secured against assets including shares in affiliate Abengoa Yield Plc, which owns and operates power plants.