Spain’s Abengoa files for insolvency proceedings for main unit

An Abengoa logo is seen at Campus Palmas Altas, headquarters of Abengoa in the Andalusian capital of Seville, southern Spain February 2, 2016. Picture taken February 2, 2016. REUTERS/Marcelo del Pozo/

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MADRID, June 30 (Reuters) – Spanish engineering and energy group Abengoa SA (ABG.MC) has begun insolvency proceedings for its main unit, the company said in a statement to the supervisor on Thursday. stock Exchange.

The move follows the Spanish government’s Tuesday rejection of a 249 million euro ($261.2 million) state aid request for the Abenewco 1 unit that would have given it more time to consider a takeover bid by US private equity firm TerraMar Capital. Read more

The Seville-based company had borrowed heavily for more than a decade to finance an aggressive clean energy expansion from its traditional infrastructure projects.

In February 2021, Abengoa began voluntary bankruptcy proceedings after its creditors refused to extend a deadline to negotiate a restructuring agreement.

Abenewco 1, which owns the majority of the assets and liabilities of its parent company and employs most of the group’s 13,500 employees, was not part of this insolvency proceeding.

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Reporting by Jesús Aguado and Isla Binnie; Editing by Bill Berkrot

Our standards: The Thomson Reuters Trust Principles.

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