Two separate reports from two consultants conclude that the Sevillian multinational is concentrating the conditions necessary to be a beneficiary of the 249 million public euros
The government does not come to Abengoa’s aid, despite the fact that the Sevillian multinational fulfilled the necessary conditions to inject public money into it. This is stated in the report of one of the auditors who provide external support to the State Society of Industrial Participations (SEPI).
Abengoa “meets the requirements, criteria or conditions to be a beneficiary” of the 249 million euros applied for from the SEPI Strategic Companies Solvency Support Fund, “with qualifications”, including the validation of the viability plan and the financial repayment of the plan.
Despite this, the board of the Solvency Support Fund for Strategic Companies, managed by SEPI, agreed last Monday to definitively reject Abengoa’s request for government aid for an amount of 249 million euros, the day the council of ministers approved the rescue of still six companies.
The report, prepared by Grant Thornton LP – Grant Thornton Advisory SLP, states that it meets the conditions: it was not a troubled company as of December 31, 2019; the beneficiary company would cease operations or face serious difficulties in continuing to operate without temporary government support; the forced cessation of activity would have a major negative impact on economic activity or employment at national and regional level; presents a feasibility plan to overcome the crisis situation; and provides for the repayment of state aid. In addition, the systemic or strategic importance of the sector of activity or the company is studied.
The report also concludes that the instruments chosen to strengthen Abengoa’s solvency are “the most appropriate” to meet recapitalization needs and, furthermore, the amount of temporary government support is the minimum necessary to maintain the company’s viability. to recover. improving his ability.
Similarly, the report of the company PKF ATTEST also concludes that Abengoa meets the requirements, criteria or eligibility requirements to be a beneficiary of the SEPI fund, although it specifies that “the legal proceedings, the claims, administrative files or other contingencies, that “may affect economic stability or the requested temporary financial support from the government”.
The non-bailout puts Abengoa on the brink of what could become one of the largest bankruptcy proceedings in Spanish corporate history, with a gap of nearly €6,000 million.
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.
