Abengoa unit gets U.S. court approval to join restructuring plan

|About: Abengoa SA (ABGB)|By:, SA News Editor

A leading bankrupt subsidiary of Abengoa (NASDAQ:ABGB) won U.S. court approval yesterday to join a $10B debt restructuring agreement in Spain, a week before a deadline for the company to secure creditor support for the plan.

The bankruptcy judge approved the request by Abeinsa Holding, one of Abengoa's two main U.S. subsidiaries in bankruptcy, to join the master restructuring plan, overruling objections by unsecured creditors who said the deal would give them a recovery of only pennies on the dollar.

Meanwhile, a group of Abengoa's main creditors such as Santander bank and global alternative asset managers including Oaktree Capital Management will gain control of the company in exchange for $1B-plus of new cash.