Abengoa SA creditors, including Banco Santander SA and HSBC Holdings Plc, have reached a final agreement to provide the troubled renewable energy company with a 106 million-euro ($116 million) credit line to help it pay workers’ salaries and suppliers.
Lenders expects to sign the final agreement this week, a spokesman for the group of banks said by phone on Dec 22. The loan will be backed by shares in Abengoa Yield Plc, the power plant operator created by Abengoa that trades in the U.S., he said.
Seville, Spain-based Abengoa, which has 8.9 billion euros of gross debt, is negotiating with the banks after it filed for preliminary creditor protection last month in a bid to stave off insolvency. The company has until the end of March to reach an agreement with creditors under Spanish bankruptcy law.
