Abengoa Creditor Banks Said to Ask Adviser to Map Debt, Leverage

  • Seven banks include Banco Santander, CaixaBank, HSBC
  • Lenders met at KPMG office in Madrid to discuss Abengoa

A group of seven banks including Banco Santander SA and HSBC Holdings Plc have asked KPMG to map out Abengoa SA’s jumbled pile of debt as well as its liquidity needs, according to three people familiar with the matter.

Officials from the banks met with representatives from their appointed adviser KPMG and law firm Uria Menendez on Monday and discussed the financial situation of the Spanish renewable energy company until well into the night at KPMG’s offices in Madrid, said the people, who asked not to be identified because the meeting was private.

Lenders and bondholders are preparing to start negotiations with Abengoa after it filed for preliminary creditor protection with a court in Seville last week. The company, which has 8.9 billion euros ($9.4 billion) of gross debt, now has four months to reach an agreement with creditors under Spanish bankruptcy law. If it fails, Abengoa will need to file for full creditor protection. More than 90 percent of cases that reach that stage in Spain end in liquidation in according to rating company Axesor.

The other banks that took part in the meeting on Monday were Banco de Sabadell SA, Banco Popular Espanol SA, Bankia SA, CaixaBank SA and Credit Agricole CIB, the people said.

A spokeswoman at Credit Agricole didn’t immediately reply to an e-mail and calls seeking comment on the talks. Officials from the other banks, KPMG, and Uria Menendez declined to comment.

Abengoa has total bank facilities of about 20 billion euros including working capital, project-finance debt and loans, a document compiled by one of the creditors and seen by Bloomberg shows. Santander, Spain’s largest bank, has the largest exposure at 1.5 billion euros, with 125 million euros in corporate loans and 1 billion euros in working capital, the document shows.