Abengoa Mexico gets approval to restructures its debt
This restructuring takes places after a negotiation hold between Abengoa Mexico and its creditors during 2019.
Image for illustration purposes
Mexico: Abengoa has received a court approval, issued by the Sixth District Court in Civil Matters of Mexico City, to the amending agreement of the original bankruptcy agreement subscribed in 2018.
This modification, signed by its creditors in 2019, involves the restructuring of Abengoa Mexico’s debt and the implementation of an updated business plan that represents a new starting point in the country.
This restructuring takes places after a negotiation hold between Abengoa Mexico and its creditors during 2019, when both parties agreed to modify the original agreement based on a business plan that was able to guarantee the viability of Abengoa in the country. The amending agreement was submitted for approval to the Court on 13 November 2019 with a support of over an 80 % of its creditors.
The recently issued court approval allows Abengoa Mexico to restructure its debt, that exceeded $174 M (€155 M / 4 B Mexican pesos). The agreement, that also seeks the greatest recovery for the creditors, implies that the remaining debt will be amortised through a repayment schedule for the next 9 years.
Mexico, where Abengoa has operated for almost 40 years, continues to be a strategic country for the company. This court approval and consequent restructuring represent an important launching point for Abengoa’s boosting in Mexico and the implementation of the new business plan.
Source: Abengoa