Abengoa set for short-term relief as banks agree lifeline – reports

Stricken solar-thermal specialist Abengoa will get a short-term financial relief package from its creditors as it battles to stave off bankruptcy, said reports.

Financial newswires Reuters and Bloomberg said a group of banks will advance more than $115m to Abengoa, which filed for creditor protection in late November.

The funds will be used to pay wages and allow operations to continue as the company tries to find a longer-term solution to its woes, they added.

The finance will be guaranteed by shares in Abengoa Yield, the Spanish group’s yieldco, said the reports, which cited unnamed sources close to the matter.

Heavily-indebted Abengoa plunged into crisis when compatriot steel group Gonvarri reversed plans to make a $264m investment.