The Government holds the Junta de Andalucía responsible for the bankruptcy of Abengoa
The Government Spokesperson and Minister of Finance, María Jesús Montero, has defended the Government’s role in keeping Abengoa afloat. In the press conference after the Council of Ministers this Tuesday, he declared that the Executive has done “its duties and tasks” and has looked at others, the banks and the Junta de Andalucía, as those who have “to explain why They have not been in the same degree of commitment ”, which has led the company to request the voluntary bankruptcy of creditors.
According to Montero, the Government has supported Abengoa “at all times” and has always “reached out” to the company to “bring to fruition a difficult situation” aggravated by the Covid-19 crisis, being willing to contribute more of 400 million euros in the restructuring plan for the group through loans and guarantees from ICO and the Spanish Export Credit Insurance Company (Cesce).
The minister stressed that the company itself explained in its communication to the National Securities Market Commission (CNMV) the reasons why it had not been able to complete the operation, which “basically” are the lack of a longer term by financial entities creditors, “a circumstance to which they have not agreed”, and the condition of the contribution to the rescue plan of 20 million by the Junta de Andalucía, “which did not materialize and was an amount infinitely lower than the amount itself Government of Spain wanted to raise, “he said.
“We have tried to be part of this solution, but other actors that had to participate have not fulfilled the expectations or commitments that the company itself had raised,” said Montero, warning that “it is not an assessment of the Government, but that the careful reading of the relevant fact of the company can lead to the same conclusions ”.
Way to go
“Obviously, there is still a long way to go, the fact of presenting the contest does not necessarily have to imply that a definitive liquidation of the company will take place, hopefully the administrator will have the capacity to find a new investor who can take advantage of the talent and know-how that one of the most important engineering companies in the country and the most important in Andalusia has contributed in recent years ”, he added.
This Monday, Abengoa requested the declaration of voluntary bankruptcy after failing to get financial creditors to grant it a new extension of the deadline for closing and executing the restructuring agreement. On August 6, the group had reached an agreement for Abengoa Abenewco 1, which according to the plan was expected to become the parent company of all the company’s businesses, to sign a five-year loan for an amount of up to 230 million euros for the one who requested the ICO guarantee under Royal Decree-Law 8/2020 of urgent and extraordinary measures against the social and economic impact of covid-19. To the 230 million euro loan, Abengoa added a five-year guarantee line for an amount of up to 126.4 million euros, extendable to 300 million euros, classified as a new line of guarantees.
The closure of the operation was pending the contribution of the Junta de Andalucía to that rescue in an additional 20 million euros that was never completed and that, thus, saw this Monday how the extensions that had been winning were ended in his race for a new save.
Abengoa’s financial debt at the end of 2019, the last year with data reported by the company – which it presented just a week ago with almost a year delay – amounted to 4,783 million euros, although it rose to almost 6,000 million if they were taken into account. account 1,165 million euros corresponding to debt of projects for sale. The group already avoided in 2017 what would have been the largest bankruptcy in the history of Spain, after being beset by a debt of almost 9,000 million euros.