The Abengoa group, established in 1941 and headquartered in Seville, is made up of 325 companies, part of which. Specializing in the infrastructure, energy and water sectors, Abengoa SA, the multinational’s parent company, has requested bankruptcy due to having a capital deficit of 388 million euros and not having reached an agreement to convert part of the 153 million that overdue debt in participatory loans. Since last August 18, Abengoa SA was in pre-bankruptcy proceedings and on February 18 its pre-bankruptcy protection expired. The third rescue plan negotiated by Gonzalo Urquijo provided forgiveness and the conversion of debt into shares of the subsidiary Abenewco1 (which concentrates the business), leaving the company’s financial liabilities at 528 million. However, this plan left the shareholders of Abengoa SA diluted by 2.7% of the subsidiary Abenewco1, the new Abengoa that concentrates the assets and businesses of the multinational.
We are facing the second largest bankruptcy in Spain, in euros (at the end of 2019 it stood at 5,989.7 million), only behind that of Martinsa Fadesa, which totaled more than 7,100 million euros. Abengoa will go down in history for being the main bankrupt since the Great Recession.
A management that would have optimized the company’s resources would have avoided the outcome
The Minister of Industry, Commerce and Tourism, Reyes Maroto, said last week that the central government is willing to continue helping Abengoa and asked both the Junta de Andalucía and minority shareholders to unblock the complex situation that the Andalusian multinational is experiencing. . However, the inclusion of the contribution of the Board in the restructuring contract was made without at any time there being a formal commitment from the Andalusian Government and without providing any guarantee that the company would return the public money, as defended by the regional Executive. The ICO and the creditor bank clung to this refusal so as not to mobilize the resources to which they had committed. It is very bad news for the sector and without a doubt for the Spanish industry now that the end of the pandemic and a recovery of the national GDP are expected, where without a doubt . The company employs 14,000 workers, 2,500 in Spain; thousands of jobs that remain in the air awaiting possible restructuring or relocation in the sector itself. The underlying problem of viability has not been resolved, and that has undoubtedly weighed like a stone. Internal disagreements and the lack of the 20 million that were necessary for the rescue have led the group to the financial abyss. Now it is up to the administrations to look for good solutions to be able to redirect the situation at a time and a sector also affected by the situation of the pandemic.
The underlying problem, viability, has not been resolved and that has weighed like a stone
Spain is a leading country in the development of energy installations, in which Abengoa has great knowledge, and we are one of the countries with the greatest future in solar energy. These factors should be taken advantage of to recover talent and redirect both companies and research in this regard, to be able to absorb into the labor market all the people who may lose their jobs. We have left for society both in the technical and financial aspects, and a notice to sailors for the optimization of resources, the improvement of research and development and innovation of companies that are presumed to be capital in the coming years.
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