By Linda Hall • 09 March 2023 • 16:00
ABENGOA: Cox Energy lifeline would permit Abengoa to maintain its headquarters in Sevilla
Photo credit: CC/Arup
The Spanish multinational, which specialises in energy transmission and distribution, has been in financial crisis since 2014 when its shares plummeted by 50 per cent and the company recognised a €9 billion debt.
After three rescue bids in 2015, 2018 and 2020 failed to bring Abengoa back to health, the State Industrial Investment Corporation (SEPI) refused to provide the €249 million that was needed for an Abengoa restructuring operation, leaving the company’s future hanging in the balance.
Abengoa, once a symbol of Andalucia’s industrial and technological development, even won praise from former US president Barack Obamo, who described it as a prime example of the “green company” of the future.
It was the first Andalucia firm to be listed on Spain’s Ibex index and debuted in 2013 on Nasdaq in the US not long before it commenced its 2014 freefall.
Cox Energy, which is based in Mexico City and is present in Latin America and Spain, has indicated its willingness to assume Abengoa’s €206 million debt and its guarantees for outstanding projects.
In addition, it would take on the engineering firm’s project financing debt of a further €252 million, as well as €22.8 million in outstanding Social Security quotas, while guaranteeing payment of 100 per cent of Abengoa’s privileged credits.
In addition, a financial plan would make available a €300 million guarantee line, as well as a workload that would reduce by a third the demands on Abengoa’s cash requirements.
A Cox Energy communique also pointed out that its offer would guarantee the continuance of 9,500 jobs and permit Abengoa to maintain its emblematic headquarters in Sevilla.
Thank you for taking the time to read this article, do remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories and remember, you can also follow us on Facebook and Instagram
Share this story
Subscribe to our Euro Weekly News alerts to get the latest stories into your inbox!
By signing up, you will create a Euro Weekly News account if you donâ€™t already have one. Review our
Originally from the UK, Linda is based in Valenca and is a reporter for The Euro Weekly News covering local news. Got a news story you want to share?
Then get in touch at firstname.lastname@example.org.
Download our media pack in either English or Spanish.