Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

Abeinsa Holding Chapter 11 Petition Filed

Abeinsa Holding and 13 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 16-10790. The Company, which is involved in the engineering and construction of sustainable technology solutions in the energy and environmental sectors, is represented by R. Craig Martin of DLA Piper. Documents filed with the Court explain, "In face of a global slowdown, distress within the energy sectors and a heavily overleveraged balance sheet, Abengoa and its affiliates and subsidiaries throughout the world have been working toward a global restructuring of its financial obligations for months….The Chapter 11 Cases are necessary to assist with the implementation of Abengoa's global restructuring plan and to effectuate any necessary restructuring at the respective businesses of each of the Debtors." Abeinsa Holding and its affiliated Debtors filed a motion for joint administration under Abeinsa Holding's docket, and each of the Debtors is an indirect subsidiary of Seville, Spain-based Abengoa, S.A. (which filed for Chapter 15 protection on March 28, 2016). A corporate release explains, "Abengoa passes the agreement with the support of 15.04 % more than the required 60% of the lenders in order to approve the restructuring plan….In parallel, Abengoa will also present as part of their restructuring plan for the company the plan to file Chapter 11 for its affiliates in the United States and Chapter 15 for all affiliates with the end goal to apply protection and a homologation of the agreement in the US. This key step in the restructuring process of Abengoa and will permit the company to complete the Financial Viability Plan that has already been accepted by lenders in order to stabilize business and protect its leadership in the energy and environmental sectors." The Company further notes, "As contemplated by the Standstill Agreement, the Foreign Debtors seek cross-border recognition of the Spanish Proceeding to extend the Standstill Agreement with respect to the Foreign Debtors within the territorial jurisdiction of the United States of America. In addition to Abengoa, S.A.'s Chapter 15, Abeinsa Holding's Chapter 11 filing also follows the February 24, 2016 Chapter 11 of Abengoa Bioenergy U.S. Holding and affiliated Debtors. Abeinsa Holding's Chapter 11 petition indicates total assets greater than $1 billion.

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