CSP giant Abengoa secures creditor deal to stave off bankruptcy

Spanish concentrating solar power (CSP) specialist Abengoa has reached a deal with its main creditors as it battles to stave off bankruptcy.

Abengoa – which sought protection under Spanish insolvency law last November and has been battling to put together a restructuring plan ever since – said the agreement will see the creditors inject €1.17bn ($1.3bn) into the company in return for a 50% stake in the business.

Abengoa is a long-standing leader in the global CSP market, as well as a significant investor in PV, wind and transmission assets. Its restructuring efforts have included a major divestment programme to raise cash to continue its operations.

The company, which had expanded rapidly in the last decade, ran into trouble when it faced difficulty servicing an estimated €9.4bn debt pile and a hoped-for investment from compatriot steel group Gonvarri failed to materialise.

The plan requires the approval of 75% of the company’s creditors under Spanish rules.

If successful it will prevent Abengoa becoming the largest corporate bankruptcy in the country's history.