• Spain's news in English
 
app_header_v3
Crisis talks at Spain's Abengoa as firm teeters on brink of bankruptcy
A general view of the Abengoa solar plant in Sanlucar la Mayor. Photo: AFP

Crisis talks at Spain's Abengoa as firm teeters on brink of bankruptcy

AFP/The Local · 30 Nov 2015, 09:23

Published: 30 Nov 2015 09:23 GMT+01:00

Various bank creditors will meet KPMG on Monday to discuss restructuring the company's debt just days after the CEO resigned.

Santiago Seage resigned on Friday after it emerged the Spanish renewable energy giant was close to bankruptcy, as concerns rise over the fate of a firm that employs close to 29,000 people.

The company announced Wednesday that a deal with Spanish engineering group Gestamp -- which had been due to inject much-needed cash into the firm -- had fallen through, leaving it with a mountain of debt and the threat of becoming Spain's biggest-ever corporate failure.

On Friday, it said it had accepted "the resignation of Santiago Seage", adding all operational powers would now be in the hands of board chairman Jose Dominguez Abascal.

Gestamp subsidiary Gonvarri had planned to buy up 28 percent of Abengoa for some 350 million euros ($370 million), which would have made it the renewable energy firm's biggest shareholder.

But the deal fell through, and a court in the southern city of Seville -- where the company is headquartered -- said Friday it had launched bankruptcy proceedings, which offers Abengoa protection from creditors for up to four months until it finds a solution.

Unions and politicians are increasingly concerned about the fate of the 70-year-old firm, which employs 28,700 people around the world, including 7,000 in Spain.

Alberto Garzon, Spain's far-left candidate to December general elections, called on the government to rescue the company while UGT, one of Spain's main unions, urged the authorities to find a solution.

"What we cannot allow -- neither Abengoa workers, nor Spanish society, nor the industrial sector of our country -- is to let this company disappear," UGT head Candido Mendez told Cadena Ser radio.

Economy Minister Luis de Guindos told reporters it was important for the world player in solar and wind power, biofuels and water management to find "an industrial partner", but he appeared to reject any bailout of the group.

"Any action by the government will be constructive, but we also have to take into account that there are limits in European regulations with regards to state aid," he said.

Story continues below…

De Guindos said that from "a business point of view, (the company) is viable.".

"Now what is most important is to find out exactly what the accounting and debt situation of the company is."

Shares in Abengoa have been suspended from Spain's main Ibex-35 index after they went into freefall.

For more news from Spain, join us on Facebook and Twitter.

AFP/The Local (news@thelocal.es)

Your comments about this article

Today's headlines
Smoking near kids is 'form of abuse': Spanish experts
Photo: Thomas Coex/AFP.

A group of Spanish medical experts warns that given the serious health effects, lighting up around a child could be considered abuse.

Man jailed for driving car with bomb into political party HQ
Police blocked off the streets in 2014 after the man drove his car with an explosive device into the office of the Popular Party. Photo: Gerard Julien/AFP.

An unemployed man who drove a car loaded with a home-made bomb into the Madrid headquarters of Spain's ruling Popular Party was sentenced to five years in jail.

Confused Spaniard causes evacuation of Cologne airport
Cologne Bonn airport was put on lockdown after the Spaniard skipped security. Photo: Patrik Stollarz/AFP

This might be the last time he decides to skip security...

Isis storm Real Madrid fan club in Iraq, shooting 12 dead
Real Madrid players. Photo: Javier Soriano/AFP

Spanish football authorities have condemned the attack on a Real Madrid supporters club, which left 12 fans dead during Saturday night's Champions League final.

How a quiet Barcelona block became a hotbed of protests
Police stand off against protesters in Barcelona. Photo: Conor DeVries.

Journalist and local resident Conor DeVries gives a first-hand account of the riots that have shaken one Barcelona neighbourhood.

Gallery
Ten amazing reasons to visit Spain's Canary Islands
Incredible scenery on the Canary Island of La Gomera. Photo: Till Krech/Flickr

To celebrate Canary Island Day, The Local takes a look at some of the best reasons to visit Spain's most exciting islands.

Four-day metro strike brings travel chaos to Barcelona
File photo of Barcelona Metro. Photo: AFP

Metro workers are striking from Monday until Thursday.

Gibraltar leader fears Spain sovereignty push over Brexit
Gibraltar's chief minister, Fabian Picardo. Photo: Jorge Guerrero/AFP

Spain may try to force the issue of joint sovereignty with Britain over Gibraltar in the event of a Brexit, the territory's chief minister said in an interview aired on Saturday.

What's on in Spain: June 2016
The Battle of Wine festival. Photo: AFP

Spaniards celebrate the arrival of summer with a month of festivals, concerts, and fairs.

Real Madrid come home to ecstatic crowds in capital
"How can I not love you!," shouted the ecstatic crowd at the Plaza de Cibeles. Photo: AFP

Thousands of Real Madrid fans chanted and waved supporter scarves under a rain of confetti on Sunday in the Spanish capital as the team returned home after an historic 11th European Cup win.

Sponsored Article
Eat, learn, live: unforgettable holidays in France
National
Stunning cave paintings found 300 metres below Spain
Sponsored Article
Why you should attend an international job fair
Travel
Five good reasons why Extremadura should be on your bucket list
Lifestyle
Top Ten: Barcelona's coolest rooftop bars
National
Plane forced to dodge THREE drones to land in Bilbao
National
Spain launches campaign to stop English 'invasion'
Culture
Ten unique Basque words you need to learn right now
National
'It’s time to dig up Franco' say victims of Spain's dictatorship
Lifestyle
'Severe jellyfish stings' end Brit's Spanish swim feat
Sport
5 reasons why Spanish clubs dominate European football
International
Tesco to bring British tea and biscuits to Spanish stores
Culture
Bucket list: 16 brilliant things to do once in your life in Spain
National
Spain's Civil War victims to be exhumed from Franco's tomb
National
Two mums face jail for leaving kids in car to go out drinking
Education
Students at Spanish college forced to take exorcism class
National
Ten superb reasons why you need to visit San Sebastián
Society
Abused wife saved by hiding SOS note in son's homework
National
Look up! Rare meteor shower set to dazzle skies over Spain
Politics
Why Spain is heading for a Groundhog day election
Travel
Ibiza bans drinking in street… and that includes water
National
Expats didn't 'abandon' UK so ALL Brits should get EU vote
Features
What's on in Spain: May 2016
Travel
Discover Spain's breathtaking national parks
3,145
jobs available