"Abengoa, the global renewables energy giant that was caught cooking its books in 2015, collapsed a year later but narrowly avoided insolvency by restructuring €9 billion of its debt and receiving a government bailout, only to hit the rocks again in 2018 and restructure even more debt and receive yet another bailout, has just hit the rocks again and filed for insolvency after the regional government of Andalusia withdrew an offer of a measly €20 million in funding as part of Abengoa’s latest rescue deal.
Abengoa’s lenders finally lost patience and turned off the money taps.
According to El País, it is the second largest (bankruptcy), after Martinsa Fadesa’s collapse in 2008 under a €7.2 billion debt load.
... its 2019 financial statement did not include the all-essential auditor’s report, for the apparent reason that the board didn’t even bother sending the document to its auditor, PwC, before publishing it.
This is not just highly improper, it contravenes Spain’s market regulations.
It also makes the document virtually worthless.
... in August it reached a preliminary deal with its creditors to restructure its debt and obtain additional liquidity.
... But the deal was scuppered when a large bloc of disgruntled retail shareholders decided that they’d finally had enough of being taken for a ride by the company’s management.
Abengoa almost totally wiped out its shareholders in its 2016 restructuring.
Since then, the stock fell further toward zero before finally being suspended months ago.
On the last day of trading, the “B” shares were worth just half a cent.
... The banks have cut off financing.
... The board of directors is now seeking alternatives to ensure the subsidiaries that carry out the group’s activities remain viable, the company said in the filing.
This has been the plan all along: to liquidate the parent company, Abengoa SA, while keeping many of the subsidiaries that hold the most valuable operational assets alive.
The battle for control of the company continues to rage.
... by forcing the company into insolvency, the banks have effectively admitted that Abengoa is insolvent, which will make it a lot harder for the government to justify giving the company yet another bailout.
But this is Abengoa we’re talking about, one of the world’s most resilient zombie companies that has always managed to get another bailout and keep on going."