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.
The voluntary filing by Abengoa Bioenergy US Holding, a Missouri-based operator of ethanol plants, comes shortly after corn suppliers owed money filed involuntary chapter 7 liquidation petitions against two affiliated Abengoa units in Kansas and Nebraska bankruptcy courts.
The Spanish company faces a March 28 deadline to reach a restructuring plan with its banks and bondholders.
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.
Abengoa Yield (NASDAQ:ABY) earlier named Francisco Martinez-Davis as its new CFO, replacing Eduard Soler, who resigned in September.
Martinez-Davis most recently was CFO for the company responsible for the management and operation of Madrid's metropolitan rail service, and had been deputy general manager in finance and treasury at Spanish telecom company Telefonica Moviles.
The news comes four days after the company said it had changed its corporate name to Atlantica Yield.
Abengoa (ABGB, ABY) creditors reach a final agreement to provide the company with a €106M ($116M) credit line to help it pay workers’ salaries and suppliers, with a final agreement expected to be signed this week.
The loan would be backed by shares in Abengoa Yield, the power plant operator created by Spain-based Abengoa that trades in the U.S.
Abengoa has until the end of March to reach an agreement with creditors under Spanish bankruptcy law.
Abengoa (ABGB, ABY) creditors reach a preliminary agreement to provide the distressed company a €113M ($122M) credit line to pay wages and suppliers through the end of the year, with a final deal expected to be signed early next week, Bloomberg reports.
The deal gives Abengoa more time to negotiate with lenders as it works on a restructuring plan, but analysts say insolvency remains a possibility in 2016 as obtaining further funding may prove challenging.
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.
Abengoa (NASDAQ:ABGB) and creditor banks agree to put on hold an option of selling shares in its Abengoa Yield (NASDAQ:ABY) business as a means of raising money, Reuters reports.
Abengoa, trying to avoid becoming Spain's biggest-ever bankruptcy, is negotiating a multi-million-euro lifeline with creditor banks which have asked the company to guarantee it with assets.
Banks had been pressing ABGB, which owns biofuel and solar-heated power plants in the U.S., to sell assets immediately, including a 47% stake in ABY, but all sides reportedly agreed today to put the idea on hold.
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.