The Council of Ministers does approve the rescue of Celsa and five other companies for a total amount of 721 million euros
More than seven years. The time has come for Abengoa to drag into an extremely delicate financial situation that now threatens to sparkle in the biggest bankruptcy in Spain, for a company that accumulates some 6,000 million euros in debt… and more than 5,000 employees.
The Council of Ministers has refused to include the company in the group of new ‘rescues’ with the Solvency Support Fund for Strategic Companies of the State Society of Industrial Participations (SEPI). Celsa, Blue Sea and Meeting Point, in addition to Imasa, Isastur and Vivanta. A total of 721 million euros, of which the largest part – about 550 million euros – corresponds to the rescue of Celsa, once it has been given the green light from Brussels.
No euro for Abengoa at the moment. Government spokeswoman Isabel Rodríguez clarified after the council of ministers that it has not technically been rejected pending rescue. But it’s also not approved. And there are no more tips until June 30, when the fund intended to rescue companies hit by the impact of the pandemic ends. So the decision would fall: Abengoa does not meet the conditions to be saved.
The aid requested by the company amounted to 249 million euros. A public contribution that was essential to avoid bankruptcy, as it in turn guaranteed the Terramar fund to inject another 200 million into Abenewco 1, the subsidiary that groups the main assets of the company.
The arguments put forward by Abengoa against SEPI’s rejection appear to have had no effect. The government spokeswoman stressed that the applications charged to the solvency fund “are governed by technical and objective criteria”. And from the Treasury Department, they state that the approval of these bailouts is based on “an exhaustive and rigorous process of analysis of the economic and legal situation, the impact they have suffered from Covid-19, the viability plan put in place by each of the the entities, as well as the prospects for the evolution of the group and the guarantees provided to ensure the return of the temporary public financial support it will receive, criteria that Abengoa would not meet.
If there is ultimately no bailout by June 30, as everything seems to indicate, Abenweco1 will declare insolvency proceedings in July, when the current moratorium ends and so does the Terramar offer. The parent company Abengoa has been bankrupt since February 2021 and must submit its agreement in a few days and agree it with the creditors. If not, the company would go into liquidation immediately.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
