Spain's Abengoa to sell biofuel assets under viability plan
Troubled Spanish group Abengoa SA (BME:ABG) plans to sell its first-generation biofuel assets as part of efforts to ensure its future.
The company initiated pre-insolvency proceedings in November and is protected under article 5 bis of the Spanish Insolvency Law for up to four months.
Abengoa said late Monday that under a viability plan presented to its board by turnaround consultancy Alvarez & Marsal it will focus on engineering and construction activities with both own and third party technology. The plan envisages the sale of non-core assets, such as the first-generation biofuel operations which include ethanol production sites and others assets. Under the scheme, the company's revenues levels in the coming years would be around two-thirds of the revenues generated in 2014.
"In accordance with this plan, the Company will negotiate with its creditors a debt restructuring as well as the necessary recourses to continue its activity and operate in a competitive and sustainable manner in the future," Abengoa said in a regulatory statement.
Reports in December said that Abengoa's US biofuels arm is closing its corporate headquarters in Missouri, and ceasing ethanol production in the country.