Abengoa restructuring clears final few hurdles

Author: Amélie Labbé | Published: 3 Feb 2017

After almost two years, the end is finally in sight for the complex restructuring of Spanish energy and construction giant Abengoa.

The restructuring is widely expected to provide a template for future cross-border corporate failures. It has seen claims against the company brought in its home jurisdiction of Spain but also internationally from creditors in Latin America, the UK and multiple US states.

One of the key difficulties of the case was that US entities had to be restructured in the US, according to Ron Silverman, partner at Hogan Lovells in New York, who represented the official committee of unsecured creditors in the Delaware chapter 11 case.

A Delaware bankruptcy judge approved the chapter 11 plan for US subsidiaries in early December. However, the outcome of the restructuring for US creditors relied on the success of Abengoa’s November 2016 Spanish master restructuring plan, handed down by a commercial court...