Abengoa: A Deeper Dive Into The Capital Structure Fails To Uncover Much Opportunity
Ian Bezek • 16 Comments
Ian Bezek • 16 Comments
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.
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
Tue, Mar. 8, 12:49 PM
Mon, Mar. 7, 12:45 PM
Fri, Mar. 4, 10:46 AM
- Abengoa’s (ABGB +34.1%) majority shareholder improved its offer to creditors in talks aimed at avoiding bankruptcy, agreeing to reduce its stake to 5% of the restructured company from 51% currently, Bloomberg reports.
- Inversion Corporativa, controlled by the family of Abengoa founder Javier Benjumea, reportedly told creditors it would cut its holding to 5%, after previously seeking a 12.5% stake with the option to increase it to 30% if the company’s viability plan succeeds.
- Under Spanish law, Abengoa has until March 28 to reach a deal with creditors to restructure its €9.4B ($10.3B) of gross borrowings or file for insolvency.
Tue, Jan. 26, 12:45 PM
Thu, Jan. 14, 12:08 PM
- Abengoa (ABGB -6.5%) bonds were valued at less than $0.05 on the euro in an auction to settle credit default swaps, signaling that investors have little confidence in the company’s future, Bloomberg reports.
- "The level indicates that the market doesn’t expect Abengoa to survive," and investors are "forecasting a full writeoff on the bonds," Spread Research credit analyst tells Bloomberg.
- Abengoa, which has €8.9B ($9.7B) of gross borrowings, is trying to negotiate a debt restructuring after filing for preliminary creditor protection in November.
- ABY -0.8%.
Dec. 30, 2015, 12:44 PM
Dec. 15, 2015, 2:36 PM
- Creditor banks are ready to extend a €210M ($229M) lifeline to Abengoa (ABGB +9.2%) over the next six weeks in exchange for a new restructuring plan, Reuters reports.
- Although lenders are still pushing for ABGB to obtain alternative funding by its own means, they are also discussing the possibility that the Spanish government and international investment funds could participate in the €110M credit line, according to the report.
- ABY +8.9%.
Dec. 7, 2015, 10:57 AM
- Arizona's largest solar power plant - the Solana generating station near Gila Bend - will remain in operation despite its parent company's financial meltdown, according to a U.S. Department of Energy official.
- Abengoa (ABGB -11.1%), the Spanish company that owns Solana, is on the verge of liquidating assets in preparation for possible bankruptcy, but the DoE says the U.S. is protected if ABGB goes into bankruptcy; Solana, which earns revenue by selling power to Arizona Public Service Co., was built with a $1.5B loan guarantee from the U.S. government to Abengoa Yield (ABY -2.9%) and Liberty, a company separate from the parent company; ABGB, however, is the largest investor in ABY.
- ABGB also is the parent owner of Mohave solar plant in California, which also should not be affected either, the DoE says.
- Separately, Bloomberg reports that ABGB will meet with its main creditor banks this week as it seeks to line up the funds it may need to avoid insolvency.
Dec. 3, 2015, 12:59 PM
Dec. 1, 2015, 9:22 AM
Nov. 30, 2015, 11:28 AM
- Abengoa Yield (ABY -2.3%) is downgraded to Hold from Buy with a $16 price target, lowered from $29.50, at Canaccord, which believes shares will remain volatile in the near term and keeps its conservative EBITDA and EPS estimates until management updates FY 2016 guidance.
- While Canaccord finds the return of ex-ABY CEO Santiago Seage a benefit for parent Abengoa (ABGB +6.9%) - ABY shares are ABGB's most valuable liquid asset as reorganization negotiations start - but for ABY shareholders, the move adds additional uncertainty surrounding the individuation process that has been at the core of the firm's bull thesis.
Nov. 27, 2015, 12:47 PM
- Abengoa Yield (ABY -3%) is working with JPMorgan Chase as it seeks a buyer for its parent company Abengoa’s (ABGB -19.7%) 47% stake, Bloomberg reports.
- ABY hopes to find a long-term investor to guarantee its sustainability as an independent business after the parent company filed for preliminary protection from creditors, according to the report.
- ABY operates solar and wind farms, desalination plants, transmission lines and conventional power plants in eight countries on four continents, which will provide steady revenue streams for years to come and should make ABGB’s stake attractive to buyers.
Abengoa SA offers technology solutions for sustainability in the energy and environment sectors. It generates electricity from renewable resources, converts biomass into biofuels and produces drinking water from sea water. The company operates its business through three segments: Engineering &... More
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