Spain's Abengoa signs accord with creditors for emergency loan
(Reuters) - Spanish thermal solar power and engineering firm Abengoa signed an agreement with its creditor banks on Thursday for a €106m (US$116.1m) credit line to help avert what would be Spain’s biggest-ever bankruptcy.
The loan will be used for general corporate necessities, Abengoa said in a statement to the stock market regulator. It is using some shares held in the affiliate Abengoa Yield as collateral, it said.
The banks also agreed to free up a further €7m related to a previous loan, backed by the Abengoa Yield shares, a source familiar with the matter said.
The guarantees relate to around 15% of Abengoa Yield, according to Reuters calculations based on information from two sources.
An additional €100m could be granted by creditors next month if Lazard, which is advising Abengoa, puts forward a credible restructuring plan by Jan. 18, banking sources told Reuters last week.
Reporting by Tomas Cobos
