A leading bankrupt subsidiary of Abengoa SA won U.S. court approval to join a $10 billion debt-restructuring agreement in Spain, a week before a deadline for the renewable energy firm to secure creditor support for the plan, Reuters reported today. Abengoa, with a global renewable energy footprint, filed for pre-bankruptcy in November in Spain, and will become the largest Spanish corporate failure ever unless 75 percent of its creditors approve a wide-ranging restructuring deal by Oct. 25. Dozens of Abengoa's subsidiaries filed for U.S. Chapter 11 protection this year, and the reorganization of the U.S. and Spanish businesses both depend on the success of the master restructuring plan in Spain, according to lawyers for Abengoa. Bankruptcy Judge Kevin Carey approved the request by Abeinsa Holding Inc, one of Abengoa's two main U.S. subsidiaries in bankruptcy, to join the MRA, overruling objections by unsecured creditors who said the deal would give them a recovery of only pennies on the dollar. Read more.
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