Abengoa presented liquidity needs for 450 million until March

  • Abengoa presented liquidity needs for 450 million until March: 100 until the end of the year and 350 for the first quarter of next year.
  • The ICO will only contribute 9 million, compared to the 20 originally planned.
  • The Lazard firm is working on a viability plan for Abengoa that is expected to be ready to be presented to the creditor banks in mid-January.
  • The president of Abengoa has sent a letter to his employer for Christmas and says that the loan “should be understood as a sign of responsibility and trust”
  • A FUND: The collapse of a colossus of the Andalusian economy.

Abengoa

Abengoa signed a loan agreement for 106 million euros on Thursday with a group of financial institutions (Santander, Bankia, Popular, CaixaBank, Sabadell, HSBC, and Calyon). The company will use Citrus North loan -with a due date of March 17, 2016- to meet its immediate commitments and continue with its activity, including the payment of payroll and the extra of its employees in December.

The company ensures that it will allocate the funds received “to meet general corporate needs” and maintains that “at this moment, Abengoa’s main objective is to find an adequate solution for all the actors involved.”

Specifically, the credit of 106 million euros granted by the creditor bank will be joined by another seven million that are released from an account that has not yet disposed of the financing granted in September. The guarantees for the loan from the creditor bank will be shares of its subsidiary Abengoa Yield for 2.5 times the value of the loan.

In its first meeting with banks, Abengoa presented liquidity needs for 450 million euros to reach March, a total of one hundred million euros until the end of the year and 350 million euros for the first quarter of next year. The creditor bank of Abengoa created a ‘G7’ to lead the negotiation in the pre-contest of the company, made up of the five leading Spanish creditors of the company -Banco Santander, CaixaBank, Bankia, Banco Sabadell and Banco Popular-, HSBC and Calyon.

The Official Credit Institute (ICO) will only finally contribute 9 million euros to the injection of immediate liquidity that the creditor bank will grant to Abengoa to face its most immediate commitments. This information comes from sources participating in the negotiations since the agency has not yet specified any data. In the beginning, it was foreseen that the organism would support the Sevillian company with 20 million, although at the last minute this amount has been reduced to less than half. The injection of liquidity will finally be 105 million euros and not 113 million euros, informed the same sources.

On November 25, Abengoa formally requested before a court in Seville the pre-contest of creditors, with which he will have a period of four months to negotiate a solution with his creditors. With the pre-contest procedure, the Sevillian company tries to overcome what would be the largest contest in the history of Spain, ahead of that of Martinsa Fadesa. The firm Lazard, hired by the company, is working on a viability plan for Abengoa that is expected to be ready to be presented to the creditor banks in mid-January.

Abengoa, for its part, accounts for 8,903 million euros of its gross total consolidated debt, whose average cost is 7%. Of this figure, the largest item is corporate debt, for an amount of 5,828 million at an average cost of 7.6 percent. The total liabilities of the group at the end of the third quarter amounted to more than 24,700 million euros.

Letter from the president to the workers

Letter from the president to the workers

 

The president of Abengoa, José Domínguez Abascal, has highlighted that the agreement reached between the multinational and various financial creditors to sign a loan agreement “should be understood as a sign of an attitude of responsibility and confidence in our future on the part of all the signatories”, as indicated by Domínguez Abascal in a letter sent to the workers.

In this letter, which was accessed by Europa Press, Dominguez Abascal, who wishes his employees “a Merry Christmas and a year 2016 in which this and many of your personal aspirations are fulfilled”, explained that this Thursday Abengoa has reached an agreement with the Official Credit Institute (ICO) and the banks Santander, Caixa, Popular, Sabadell, Bankia, HSBC and Crédit Agricole, whereby you can immediately have a loan “to meet your most important short-term liquidity needs ”

Domínguez Abascal explained that after this first step, efforts will be concentrated until the end of March to follow a “roadmap” that includes “developing a business plan that shows the value and viability of the company, carry out divestments of assets that are not fundamental for our activity, and reaching an agreement with all the actors involved in the ‘5bis’ process, to configure a financial structure and a balance sheet of Abengoa from which to operate and grow. ”

For the president of the company, the agreement reached on Thursday “is a step on the road to restore the value of Abengoa and bring it to a situation of profitable and sustainable activity in the shortest time possible.”

“Scarce communication”

"Scarce communication"

 

Dominguez Abascal has acknowledged “the limited communication during the process” and that this “has generated uncertainty among Abengoa employees.” In this regard, he pointed out that “we all would have liked a higher level of information, but the need to reach agreements and the fact that we are dealing with a listed company obliges us to limited communication, reflecting certain facts or events that have already taken place, but never expectations or opinions. ”

The maximum manager of this Andalusian multinational has recalled that Abengoa “has a history to be proud of, because we have successfully built great projects that have been pioneers in the world for their technology, projects that have contributed significantly to the development of renewable energies and the improvement of the environment “.