Abengoa

About Abengoa

Abengoa SA entered bankruptcy proceedings in November 2015. The Spanish renewable energy company had 16 billion in debt. Abengoa had expanded aggressively in biofuels, solar, and water desalination. The company relied on debt financing and government subsidies. When oil prices fell and subsidy policies changed, the business model collapsed. Abengoa filed for Chapter 15 in the US in March 2016. The Spanish government resisted calls for a bailout. Abengoa restructured in 2017 after creditors agreed to a debt for equity swap. The restructuring reduced debt by 10 billion and gave control to creditors. Abengoa survived as a much smaller company. The case demonstrated the risks of building a large business dependent on government subsidies.