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Abengoa expands its stock market crash due to the risk of liquidation


The titles of Abengoa (class A and B) have fallen more than 13% this Friday, after registering this Thursday equally important setbacks, before the liquidation risk. 'Expansión' published last day that the situation of the company is desperate and that could lead to filing for new bankruptcy in early July. It would be the second time in five years that he did. However, this time, foreseeably it would lead the group directly to a liquidation process.

This is stated by different sources, including unions, which have started to move politically to avoid a business collapse that it would have a huge impact in communities like Andalusia and that, in any case, It would be the largest corporate bankruptcy produced during the current Covid-19 pandemic in Spain.

The problem is in the banks reluctance to refinance plan raised by the group on May 19. The plan, of more than 1,200 million between new guarantees, credits and withdrawals, needs the support of the Government, through guarantees from ICO and Cesce. These guarantees are vital for banks to make new loans. But Negotiations have run aground as they looped.

In the year, Abengoa B's shares were the worst in the Spanish market, with a 70% drop. Abengoa A sinks 53%.

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