Debt-laden engineer Abengoa said on Thursday it had agreed a draft rescue plan with creditors to cut debt and inject fresh cash, in the latest attempt to avoid what could be Spain’s biggest bankruptcy.
Loss-making Abengoa, which started out 70 years ago as an engineering business in Seville and expanded into clean energy by taking on huge debts, entered pre-insolvency proceedings last year when lenders refused to extend credit lines.
Under the proposal, creditors would lend up to 1.8 billion euros ($2 bln) to the company over a period of five years, giving them the right to 55 percent of the restructured company, Abengoa said in a statement.
Simultaneously, around 70 percent of existing debt would be swapped for equity, giving thos…
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