Abengoa: A Deeper Dive Into The Capital Structure Fails To Uncover Much Opportunity
Ian Bezek • 16 Comments
Ian Bezek • 16 Comments
Wed, Oct. 19, 9:56 AM
- 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.
Fri, Oct. 14, 9:16 AM
- Royal Dutch Shell (RDS.A, RDS.B) has offered to buy Abengoa's (NASDAQ:ABGB) cellulosic ethanol plant in Kansas for $26M as a stalking horse bid, according to documents filed in bankruptcy court.
- The 25M gallon cellulosic plant near Hugoton, Kan., can turn plant waste into an advanced biofuel that qualifies for the U.S. Renewable Fuel Standard program.
- Shell also has a sugar-ethanol joint venture in Brazil, and has said it wants renewables including biofuels and wind to become "essential" for the company.
Fri, Sep. 16, 11:23 AM
- The Senate Finance Committee and the House Ways and Means Committee have launched a formal investigation into whether solar energy companies improperly received billions of dollars in tax incentives from the Obama administration.
- The committees sent letters to three companies in the residential solar industry - SolarCity (NASDAQ:SCTY), Sunrun (NASDAQ:RUN) and Sungevity - and four solar utility firms - SunEdison (OTCPK:SUNEQ), Abengoa (NASDAQ:ABGB), NextEra Energy (NYSE:NEE) and NRG Energy (NYSE:NRG).
- At issue is a Treasury Department policy that gives solar firms a 30% investment tax credit on the cost of acquiring a system, but solar energy developers do not always have the income to use the credits or the funds to buy and install solar energy systems, so they routinely enlist big investors and transfer the tax benefits.
Tue, Aug. 23, 3:19 PM
- Spanish renewable energy firm Abengoa (NASDAQ:ABGB) is selling five of its Midwestern U.S. ethanol plants for $357M, with Green Plains (GPRE +6.2%) agreeing to acquire three of them for $237M.
- GPRE, which operates 14 plants and has an ethanol marketing unit, is paying $200M for Abengoa plants in Mount Vernon, Ind., and Madison, Ill., and outbid another company for the York, Neb., plant with a $37.4M bid at bankruptcy auction; the three plants have a combined annual production capacity of 236M gal/year.
- ABGB sought bankruptcy court approval in June to sell the plants as part of an attempt to divest non-core assets.
Thu, Aug. 11, 7:47 AM
- Abengoa (NASDAQ:ABGB) says it reached a restructuring deal with its creditors to potentially avoid Spain’s largest-ever bankruptcy, sending shares higher in Madrid trading.
- Investors including Elliott Management, Centerbridge Partners and Oaktree Capital Management will provide €1.17B ($1.3B) of new loans in exchange for a 50% stake; existing shareholders, including a company part-owned by the founding Benjumea family, will be left with ~5%.
- Abengoa has until Oct. 28 to gain support from 75% of creditors for the deal, as required by Spanish bankruptcy law.
Mon, Jun. 13, 11:47 AM
- Abengoa (NASDAQ:ABGB) has lined up $350M worth of bids for four of its Midwestern U.S. ethanol plants, and is seeking permission from the U.S. bankruptcy court in St. Louis to unload the plants in connection with its global restructuring.
- ABGB hopes to put the ethanol plants - in Mount Vernon, Ind., Madison, Ill., Ravenna, Neb., and York, Neb. - on the auction block as soon as August.
- Court papers show that Green Plains (GPRE -1.5%) has offered $200M for the Mount Vernon and Madison plants, and privately-held firms have offered $150M for the two other plants.
- Some of the Abengoa units that own the plants sought Chapter 11 protection in February, and the entities that own the Mount Vernon and Madison plants joined them in bankruptcy over the weekend in conjunction with their proposed sales.
Fri, May 13, 12:44 PM
- Atlantica Yield (ABY +3.2%) says it will not pay a Q4 2015 dividend and is postponing a decision on the Q1 2016 dividend until it obtains greater clarity on cross-default and change of control issues.
- ABY says cash available for distribution was $18.7M vs. $38.5M a year ago, and its Q1 net loss widened to $26M despite a 74% Y/Y increase in revenues to $206.4M.
- ABY says it is making good progress in achieving autonomy from Abengoa (NASDAQ:ABGB); with the separation of its back-office in an advanced stage and the split in IT systems expected to be completed by year-end.
Wed, Apr. 27, 5:27 PM
- A U.S. judge grants bankruptcy protection to Abengoa (NASDAQ:ABGB) under Chapter 15 over the objections of a group insurance companies who claimed the Spanish company’s talks to restructure billions in debt was unfair to U.S. creditors.
- The insurance companies - including Liberty Mutual, AIG and Zurich American - called ABGB's ongoing restructuring talks with banks and bondholders in Spain “manifestly contrary” to U.S. public policy because it forced them to abide by a standstill agreement without due process.
- Under chapter 15, a company seeks a U.S. bankruptcy court's recognition of a foreign bankruptcy case - such as the Spanish proceeding - as the controlling case; with the judge's approval, ABGB will receive the benefits of U.S. bankruptcy law, including the automatic stay that halts lawsuits and prevents creditors from seizing assets.
Thu, Mar. 31, 5:58 PM
- A federal judge agrees to extend the shield of U.S. bankruptcy law to Abengoa (NASDAQ:ABGB), extending a protection the Spanish company already has secured from a court in its home country.
- ABGB earlier this week sought Chapter 15 bankruptcy protection, which is available to foreign companies, after 75% of its financial creditors signed on to a standstill agreement that gives the company until the end of October to reach a restructuring agreement.
- Court papers show ABGB’s debt load tops €14.6B ($16.6B), but is seeking to reach a restructuring in which it would cut costs, sell non-core assets and emerge as a slimmer business valued with €4.9B of debt.
Tue, Mar. 29, 12:49 PM
Tue, Mar. 29, 10:09 AM
- Abengoa (ABGB +10.6%) opens higher following news that it filed for Chapter 15 bankruptcy, the section of the U.S. bankruptcy code dealing with cross-border insolvencies.
- Under Chapter 15, a company seeks a U.S. bankruptcy court’s recognition of a foreign bankruptcy case as the controlling case; if recognized by a U.S. judge, ABGB would receive the benefits of U.S. bankruptcy law, including the automatic stay that halts lawsuits and prevents creditors from seizing assets.
- Yesterday, ABGB won more time to continue negotiations with creditors over its proposed debt restructuring plan that would call for the company to cut costs and unload non-core assets.
Tue, Mar. 29, 9:18 AM
Mon, Mar. 28, 8:48 AM
- Abengoa (NASDAQ:ABGB) says it has won support from 75% of its creditors to continue talks for as much as seven more months to approve a €9.4B ($10.5B) debt restructuring.
- The support level exceeds the 60% required to extend the acceptance period and puts the company on track to approve its final restructuring plan.
- ABGB had until today to reach an agreement or start insolvency proceedings after seeking preliminary creditor protection in November.
Tue, Mar. 22, 5:15 PM
- Abengoa (NASDAQ:ABGB) says it has raised €137M in emergency loans, ahead of a court hearing it hopes will win more time to persuade investors to agree to restructuring proposals.
- ABGB now has until Sunday to persuade creditors holding 60% of its debt to agree to a seven-month standstill; if a judge in ABGB's home city of Seville, Spain, is satisfied at a hearing on Monday that the company has sufficient support, the court may be persuaded to grant extra time.
- ABGB, struggling with €9.4B ($10.6B) in debt, is in pre-insolvency talks with lenders and has until March 28 to win their backing and avoid becoming Spain's largest ever bankruptcy.
Fri, Mar. 18, 8:58 AM
- Abengoa (NASDAQ:ABGB) says it will ask financial creditors for a seven-month standstill to help it restructure €9.4B ($10.6B) of debt.
- ABGB entered pre-insolvency talks with creditors last November after a potential investor backed away, affording it some protection from creditors, but the pre-insolvency period expires on March 28; the company aims to get the standstill in place by then, but it needs the backing of creditors representing 60% of its financial debt.
- Earlier this week, ABGB said its restructuring package had the support of banks and bondholders representing 40% of its financial debt at the last count.
Wed, Mar. 9, 5:31 PM
- Abengoa's (NASDAQ:ABGB) creditors have reached agreement on a proposal to restructure the Spanish company's debt and inject cash, according to reports earlier today, but several hurdles stand in the way of a deal to save the group from bankruptcy.
- Bondholders and bank lenders are said to have agreed in principle to overhaul Abengoa’s €9.4B ($10.3B) of gross borrowings in exchange for control of 95% of the restructured company.
- The company must reach an agreement with creditors by March 28 and present a restructuring plan to a court in Spain to avoid insolvency proceedings under Spanish law.
- Separately, Moody's changed Abengoa's probability of default rating to Ca-PD/LD after defaulting on payment of interest payable on 550M in senior unsecured notes due 2018 after the 30-day grace period which elapsed March 7.