The president of Abengoa, Gonzalo urquijo, recognized this Wednesday that the The company has four months of hard work ahead of it to put together the restructuring plan in which it is immersed. Part of this plan goes through a corporate reorganization, to refinance the debt with its creditors and, also, to give air to the liabilities of what until now has been the parent company, Abengoa SA, thanks to the agreements that the company has agreed in the last years.
The Sevillian company explains in the documentation that this Wednesday sent to the National Securities Market Commission (CNMV) than, At the end of 2019, Abengoa SA had a total liability of 1,016 million euros, in some accounts that have yet to be audited. That figure includes "593 million euros of debt with group companies which, according to the 2019 restructuring agreements, it is expected that they will be forgiven at the time of the conversion of the capital instruments ".
This conversion is part of the process that the company has underway for the remainder of the year. As Urquijo explained in his digital meeting with investors, he will carry out the transfer of assets from Abengoa SA to AbenewCo 1, the subsidiary that, since 2017, has already monopolized the business and activity, although it is not the head.
THE CALENDAR AHEAD
While, Abengoa SA will remain in pre-bankruptcy proceedings, which, according to the scheduled calendar, will last until December 18. A few days before, on the 3rd of that month, the conversion of capital instruments is scheduled for AbenewCo 1. In this way, the rupture of the current Abengoa economic group will be effective.
A rearrangement that occurs after assuming that Abengoa SA maintains a negative equity of 388 million euros. "Even if the AbenewCo 1 group maintains its viability" after the restructuring signed this month, "it would not be enough to be able to rebalance Abengoa SA's equity," which would thus remain a company practically empty of content.
As a consequence of the execution of the operation, at the moment in which the conversion of the convertible instruments takes place, the aforementioned December 3, Abengoa SA will hold a 3.5% minority stake in AbenewCo 1 before dilution takes place; and 2.7% if this occurs. What Urquijo did not comment is when you trust the CNMV to give you the go-ahead to re-quote.
And, to complete this process, in addition to the cancellation of the aforementioned 593 million, Abengoa SA must achieve 96% adherence to the conversion of 153 million euros of debt into participating loans. There are many steps to take and, therefore, the CEO of the company predicted hard weeks of work ahead.