The Spanish renewable-energy giant Abengoa, which applied for preliminary creditor protection in November, is laying off staff and halting some operations, a company spokeswoman tells ENR. But its two Southwest U.S. solar thermal plants are operating, according to the company. The U.S. government is the company’s single-largest debt holder, through U.S. Energy Dept. loan guarantees for the two facilities.
The Seville-based conglomerate, with a 24,000-person labor force in 50 countries, posted a nine-month loss last month and then failed to conclude an equity stake deal with Spanish steelmaker Corporacion Gestamp that was to have infused necessary capital. Abengoa has less than four months to renegotiate with lenders its outstanding debt of about $22.1 billion. If bankruptcy happens, it will be the largest in Spain’s history. Abengoa’s creditors, which met with the company Dec. 14, insist that it secure alternative financing. One lender seeks a possible Spanish government loan, Reuters reported.