Facing a possible bankruptcy, the Spanish renewable-energy behemoth Abengoa has filed for preliminary creditor protection and, according to news reports, is winding down construction projects worldwide. The company now has less than four months to renegotiate with lenders. The U.S. government is its single-largest debt holder, through U.S. Energy Dept. loan guarantees for two solar powerplants in California and Arizona, but spokespersons for the facilities say they will remain in operation.
The move for protection by the Seville-based conglomerate, whose global labor force is more than 24,000 strong and spread across more than 50 countries, follows a nine-month loss posted last month and the collapse of a deal to have Gonvarri Corporacion Financiera, a unit of industrial group Corporacion Gestamp, buy a 28% stake.