A U.S. judge on Tuesday ordered the bankrupt U.S. subsidiaries of renewable energy company Abengoa SA to disclose their dealings with their Spanish parent, which is accused of draining cash from the U.S. units, Reuters reported yesterday. Creditors of Abengoa Bioenergy US Holding LLC and Abeinsa Holding Inc., which both filed for bankruptcy this year, have said in court filings that the U.S. businesses were transferring cash and assets to the parent in Spain. The Seville-based parent obtained provisional support of more than 75 percent of creditors for a $10 billion debt-restructuring plan, averting what could have become Spain's largest-ever bankruptcy filing. However, creditor challenges to the U.S. chapter 11 proceedings could pose a threat to Abengoa's attempt to retain control of strategic U.S. engineering and renewable energy businesses. In the case of Abengoa's U.S. units, unsecured creditors (including some who helped finance construction of one of the world's largest solar facilities in the Mojave Desert) stand to recover only pennies on the dollar. In a ruling on Tuesday, Bankruptcy Judge Kevin J. Carey granted the unsecured creditors’ committee's request that the U.S. units hand over documents and communications on matters such as asset transfers and liabilities across Abengoa's businesses, which span more than 80 countries. Read more.
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