Abengoa Files for Bankruptcy after Receiving Money Through Taxpayer Loans

by San Antonio Attorney

Abengoa, a solar energy company based in Spain, has benefitted $191 million from the financial aid of Export-Import Bank last month.  This has incited speculation since the company just filed for bankruptcy last month.  The creditors are expecting that the company will repay the debts on the balance sheet upon receiving the said amount.

Abengoa, an international company recently filed for Chapter 15 bankruptcy in Delaware and was given ample time to restructure its $16.4 billion worth of debt by the end of October.

The bank has disbursed an amount of $191 million to the company and its subsidiaries, according to the records.  The remaining $125 million worth of outstanding credit was cancelled by the bank.

The board of directors in Ex-Im approved the financing program for loan guarantees to the subsidiary of Abengoa amounting to $112.8 million last June 29.

However, the charter of the bank expired on June 30.  With a flawless record for almost 81 years, this is the first time Ex-Im has lapses in its authority.  The exposure of Ex-Im to Abengoa is an estimated amount of $66.2 million.

Since filing for bankruptcy, the financial future of the company seems bleak and some creditors raised the question whether the company can pay the financing received from Ex-Im.

Ex-Im’s representative revealed to media that the involved bank will continue to collaborate with Abengoa until the outstanding debt can be fully paid.

Prior to the energy company’s revelation of its own financial problems, they were already lambasted by media for violation of immigration law, safety codes and even environmental protocols.

Jeb Hensarling, Chairman of House Financial Services, has coerced Fred Hochberg, a former Ex-Im Chairman, with regards to the advisory board of the bank and its relation to Abengoa.

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