Abengoa’s insolvency administrator asks the board to cease its functions

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MADRID, Jun 22 (Reuters) – Abengoa’s bankruptcy administrator has asked the courts to withdraw from its functions the board of directors of the Spanish engineering and renewable energy company, which requested bankruptcy in February after failing a plan restructuring.

According to a statement to the CNMV, the Spanish stock market supervisor, the bankruptcy administration of the Company —Ernst & Young Abogados— has presented, before the Commercial Instance Court of Seville, a request to change the regime from the current intervention regime to the suspension of the faculties.

“Additionally, and for the rest of the companies belonging to the group of the bankrupt, the bankruptcy administration has requested the Court the regime of intervention of the powers of the respective administrative bodies,” he said.

According to the Diario de Sevilla, in this way the administrator would seek to prevent the company from holding a general meeting of shareholders so that they take control of the group.

The request comes while the company Abengoa Abenewco 1 SAU negotiates with creditor entities, in the context of the complex process of renegotiating the debt and the capital structure of the parent company Abengoa.

Abenewco 1, which owns most of the assets and liabilities of its parent company and where most of its 13,500 employees work, is not part of the insolvency proceedings and has received a purchase offer from Terramar. This venture capital fund has placed a series of conditions on the purchase, including participation in the rescue of the Spanish State.

A restructuring proposal to deal with Abengoa’s € 6 billion debt mountain fell apart in February after the Junta de Andalucía withdrew a € 20 million financing offer as part of a € 250 million global deal. euros.

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The Sevillian company went into significant debt during the previous decade to finance an aggressive expansion towards clean energy from its traditional infrastructure projects.

Abengoa’s price, which barely exceeds a euro cent per share, has been suspended since mid-July 2020, when the group warned about its viability if it did not refinance its debts.

Article source: https://es-us.finanzas.yahoo.com/

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