Abengoa, a Spanish multinational corporation, which includes companies in the sectors of energy, telecommunications, transportation, and environment, has recently presented the homologation of the standstill contract which has garnered support from 75.04 % of the company's lenders.
The objective is that the conditions of the contract will be applied to all lenders. Abengoa passes the agreement with the support of 15.04 % more than the required 60 % of the lenders in order to approve the restructuring plan.
The standstill contract will permit the company to exercise certain rights for resolution and early maturity of financing. This will allow the company to reach 75 % of adhesion needed to pass the final plan.
In parallel, Abengoa will also present as part of their restructuring plan for the company the plan to file Chapter 11 for its affiliates in the United States and Chapter 15 for all affiliates with the end goal to apply protection and a homologation of the agreement in the US.
This key step in the restructuring process of Abengoa will permit the company to complete the financial viability plan that has already been accepted by lenders in order to stabilize its business in the energy and environmental sectors.
As we have reported, In November 2015 Abengoa initiated a pre-insolvency proceedings after Gonvarri Steel Industries decided not to make a planned up to €350 million (US$389.5 million) investment in the company. The firm has been protected under the Spanish Insolvency Law since then for a period of 4 months which is bout to end.
The company financial advisors hired for the restructuring plan were Alvarez & Marsal and Lazard, while the creditors’ financial advisors were KPMG and Houlihan Lokey.