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2/3/16

Spain's Abengoa submits plan to avoid bankruptcy: source

Spain's troubled flagship renewable energy giant Abengoa presented a recovery plan to its main creditor banks Wednesday, in a bid to avoid bankruptcy, a source close to the negotiations said.

The plan, approved by Abengoa's board last month, entails the sale of its assets in the biofuels sector which would lead to a one-third reduction in revenues compared to 2014.

It will now be examined by the banks, bond holders and KPMG auditing and advisory firm, which has been tasked by the banks, according to the source who declined to be named.

KPMG will look at the plan in detail and "propose an overall solution within 10 to 15 days", after which negotiations will begin, the source added.

One of Spain's leading lights in sustainable energy, Abengoa has been racing against the clock to avoid one of the country's biggest ever bankruptcies.

The world player in solar and wind power, biofuels and water management filed for protection from creditors in November and has until March 28 to find a solution to its colossal debt, which stands at nine billion euros at least.

Read more: www.eu-digestFlash - Spain's Abengoa submits plan to avoid bankruptcy: source - France 24

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