A leading U.S. subsidiary of Abengoa SA heads to court today to seek approval for a bankruptcy exit plan that opponents argue violates the law by prioritizing the Spanish parent and its international backers ahead of U.S. creditors, Reuters reported yesterday. Abeinsa Holding Inc. is one of dozens of global Abengoa subsidiaries that filed for U.S. chapter 11 and 15 bankruptcy this year while their Seville-based renewable energy parent thrashed out a debt restructuring deal in Spain to avoid its own bankruptcy. The U.S. subsidiaries, which range from small ethanol plants to construction and engineering firms like Abeinsa, were guarantors of $10 billion of debt held by the parent, creating one of the most complex cross-border restructurings of the past decade. A Spanish court approved Abengoa's restructuring agreement last month, giving a group of lenders including Spain's Santander equity in exchange for debt. Now the company needs a U.S. court to approve the plan and repayment terms for creditors of the U.S. subsidiaries. To win U.S. creditor support, Abengoa has proposed investing over $30 million cash in exchange for retaining full control of the U.S. units, allowing the Spanish company to maintain its position in one of its most important markets. Read more.
Cover all aspects of the UNCITRAL Model Law on Cross-Border Insolvency as well as chapter 15 of the Bankruptcy Code with ABI’s Chapter 15 for Foreign Debtors.
