Abengoa Plans to Hold Call With Bondholders, Houlihan Lokey Says

Abengoa SA plans to hold a call with bondholders to discuss its finances, according to Houlihan Lokey Inc.

The firm is advising a group of noteholders including BlackRock Inc., AIG, Invesco, D.E. Shaw, Varde Partners and Centerbridge Partners, Houlihan Lokey’s head of Spanish restructuring said. The creditor group also hired Clifford Chance LLP to help negotiate a debt restructuring, Manuel Martinez-Fidalgo said on a call with bondholders and the law firm on Tuesday.

Houlihan Lokey and Clifford Chance have spoken to more than 50 investors, Martinez-Fidalgo said. The adviser asked Abengoa for information on its short-term liquidity and expects to receive it by the end of the day, he said.

Abengoa, which has 8.9 billion euros ($9.5 billion) of gross debt, filed for preliminary creditor protection with a court in Seville last week and has four months to reach an agreement with creditors under Spanish bankruptcy law. If that fails, the renewable energy company will need to file for full creditor protection. More than 90 percent of cases that reach that stage in Spain end in liquidation, according to rating company Axesor.

Reaching an agreement in that window “will undoubtedly be very challenging,” Martinez-Fidalgo said.