Spain fascinated about guaranteeing credit lines to renewables firm Abengoa

MADRID (Reuters) – The Spanish authorities is fascinated about granting guarantees and credit lines to renewable energy and engineering firm Abengoa (ABG.MC) in a declare to withhold the firm afloat, a source with info of the negotiations said. Spanish articulate agency ICO will relate up to 70% of the 180 million euros that bank creditors at the side of Bankia (BKIA.MC) and Santander (SAN.MC) are fascinated about lending to the firm, the source said. ICO would possibly per chance well per chance additionally straight away lend Abengoa 50 million euros, while an additional 20 million mortgage is being negotiated with the regional authorities of Andalusia. Abengoa declined to commentary. In mid-July, Abengoa postponed till July 27 a remaining resolution on a debt restructuring deal with creditors. It warned that a scarcity of liquidity and guarantees became once “severely” affecting its enterprise, making its viability “very grand” if the transaction will not be closed in the instant interval of time. A more than 50% jump in its piece price to 0.161 euros on July 14 led Spain’s monetary regulator CNMV to droop trading, searching at for the slay results of Abengoa’s negotiations with lenders. A banking source fervent in regards to the talks confirmed that ICO became once discussing guaranteeing allotment of bank’s credit lines but did not say how grand would possibly per chance well per chance be backed up by the articulate. Bankia, Santander, the Economy Ministry and the Andalusian authorities all declined to commentary. The debt restructuring deal is targeted on 250 million euros in non permanent funding wants and 3.2 billion euros that Abengoa has owed to creditors and companies since 2016, one other source accustomed to the topic said. In 2016, Abengoa avoided turning into Spain’s largest ever corporate financial destroy after striking a deal to refinance 9 billion euros of debt, handing creditors control of the firm. By slay-2019, Abengoa’s total debt became once 5.95 billion euros, of which around 1.2 billion is debt regarded as as up for sale and around 560 million belongs to challenge finance, in line with firm info. That left corporate debt at 4.2 billion euros, it showed. Reporting by Jesús Aguado; Extra reporting by Emma Pinedo; Editing by Ingrid Melander and Jan Harvey

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