Despite the fact that Abengoa is owned by a Sevillian multinational, the Government has yet to rescue it. Two separate reports by two consultants from the State Society for Industrial Participations, SEPI, state this. They were hired to assess whether the requested aid was granted. The SEPI managed Solvency Support Fund for Strategic Companies’ managing board voted last Monday to deny Abengoa’s request for public assistance in the amount of 249 millions euros. This was the same day that the Board of Ministers approved six other rescues of Spanish companies.
Abengoa “satisfies the criteria and conditions necessary to be eligible to receive the 249 million euro requested from the SEPI Strategic Companies Solvency Support Fund,” “with qualifications”, which include the validation of the viability plans and financial reimbursement.
Grant Thornton prepared the report. It explains that it meets all the conditions. The beneficiary company is not in crisis as of December 31, 2019, and would cease to operate or have severe difficulties operating without temporary public support. A forced cessation would have a significant negative effect on employment and economic activity at national and regional levels. The systemic and strategic importance of the activity or company is also examined.
The report concludes that Abengoa’s instruments to support its solvency are “the best” to meet its recapitalization requirements. Furthermore, the amount of temporary public support operation to ensure the continued viability of the Andalusian multinational is minimal without affecting its net worth.
Similarly, the report by PKF ATTEST concludes that Abengoa meets all requirements. However, it states that legal proceedings, claims and administrative files, as well as other contingencies, could have a significant effect that could affect economic stability or the temporary public financial assistance requested.
Abengoa is now at the brink, thanks to the non-bailout, of one of the most significant bankruptcy proceedings in Spanish history. It has a debt of nearly 6,000 million euros and a stake of more than 5,000 employees.
The Andalusian Board demanded explanations from the national government on Wednesday, when workers of multinational were protesting in front of San Telmo Palace (headquarters of the Board).
