Abengoa has requested this Monday the declaration of voluntary bankruptcy, after having failed in its attempts to restructure its debt, as the company has detailed to the National Securities Market Commission (CNMV).
Abengoa threatens to leave Andalusia if the Junta does not guarantee it 20 million for its rescue
In any case, the Board of Directors assures that it will continue to look for alternatives to avoid the unviability of the subsidiaries and, with this, preserve employment and try to minimize the loss of value, for which it requests “maximum collaboration” from all parties with interests in the company.
The company has made this decision after failing to get financial creditors to grant the requested consents in order to once again extend the deadline for closing and executing the restructuring agreement.
Until last February 19, as explained by the Sevillian firm, the closing period of the operation has been extended since the necessary consents to that effect have been obtained at each possible expiration, while the firm has worked, at all times and in parallel, in the search for possible alternatives to the failure to contribute 20 million euros by the Junta de Andalucía.
However, the company has explained that since a new consent for the extension of the term has not been obtained, the restructuring agreement has been automatically terminated, so that the financing operation can no longer be executed.
Quarrel between shareholders
Abengoa’s current board of directors has accused the group of minority shareholders AbengoaShares of maneuvering to improve its position against “the interests of shareholders in general” and has reiterated that the restructuring plan reached last August with its major financial creditors is “the only realistic and feasible option” to try to make the group viable.
In a report on the company’s situation sent to the CNMV in view of the next extraordinary general meeting called for the month of March, the governing body indicates that it continues to “work and support the company’s management team in all possible alternatives to achieve the objective of enabling the execution of the refinancing operation “of Abengoa.
In the documentation, the group’s board of directors reports on the meetings held since its appointment last November with the company management, unions, external advisers, as well as with alternative funds and investors to the injection of 20 million euros that the Junta de Andalucía was going to assume the rescue plan.
Thus, it defends that the instructions given by the shareholders at the general meeting held on November 17, by which it was adopted to reject the financial restructuring plan agreed in August, “are contrary to the law”, so it considers that its The decision to “not proceed with its execution in the strict sense is fully in accordance with the law.”
Specifically, the governing body considers that this instruction adopted at the November meeting is “collusive, that is, it is issued to the detriment of third parties.”
In this regard, it points out that AbengoaShares shareholders have “adopted resolutions and instructed” the board, “in an attempt to improve their position, this attempt being clearly contrary to the interests of shareholders in general, given that if the restructuring plan and lead the company to liquidation, its expected position is infinitely worse than that conferred by the execution of the plan, since its participation in the liquidation process would be null. ”
In this way, the current council believes that these instructions “are illegitimate because damage to the different stakeholders is expected from their follow-up, without a more positive result being realistic” and they raise “the risk that Abengoa will go to bankruptcy, be liquidated and increase extraordinarily the losses of creditors and of the shareholders themselves “.
Therefore, they defend that if the administrators execute the instructions, “they could incur criminal liability (punishable insolvency of art. 259.5 and 9 of the Criminal Code), in bankruptcy liability (sentence to pay the bankruptcy deficit, ex art. 456 of the Bankruptcy Law) and, where appropriate, in civil liability ex 1902 CC for the damages suffered by creditors “.
On August 6, the group reached an agreement for Abengoa Abenewco 1, which according to the plan – called ‘Vellocino’ – is expected to become the parent company of all the company’s businesses, to sign a five-year loan for Amount of up to 230 million euros for which he requested the ICO guarantee under Royal Decree-Law 8/2020 of urgent and extraordinary measures against the social and economic impact of Covid-19.
To the 230 million euro loan, Abengoa added a five-year revolving line of guarantees for an amount of up to 126.4 million euros, extendable to 300 million euros, classified as a new line of guarantees.
The closing of the operation was pending the contribution of the Junta de Andalucía to this rescue of an additional 20 million euros, which was not completed.
On December 23, the new Abengoa board of directors, chaired by Juan Pablo López-Bravo, already considered that the refinancing agreed in August was “the best and only solution for the group.”
The governing body of the company, with two members of the initial three after the resignation of Jordi Sarrias, warned that delaying its execution beyond the 31st of that month “would lead to the liquidation of the group, to the loss of thousands of jobs and to the total destruction of value for Abengoa SA and for its shareholders “.