Abengoa Bankruptcy’s Impact to Subsidiaries and Projects

by San Antonio Attorney

Spain-based company Abengoa recently filed for bankruptcy protection, leaving its many subsidiaries at risk.

However, the bankruptcy protection sought by the company building the maritime link transmission lines will not affect the construction of the project, according to Emera Officials.

Emera revealed that operations in Newfoundland are ongoing but company is closely watching the situation.  Emera expressed their confidence that the company will live up to its commitment, according to a statement to VOCM News.

Abengoa won the bid for a $200-million contract by NSP Maritime Inc last March.  This is a subsidiary of Emera Inc.

The contract cites building 400 kms of transmission lines.  These lines cover the west coast of Newfoundland and Nova Scotia.

A subsea portion of the transmission line will run from these regions beneath the Cabot Strait.

The Emera project aims to achieve greater energy sustainability for the country.  This will provide an accessible energy at a reduced cost.

This Maritime Link will also provide a connection from Newfoundland and Labrador to the North American Region.  This provides the province an opportunity to trade energy with other regions.

Aside from the projects in Canada, Abengoa was also hired to construct transmission lines for the Muskrat Maritime Link.

Abengoa’s parent company in Spain filed for creditor protection last Wednesday.

The move became widely publicized, as the media defined it as an approach that could result in ‘Spain’s largest corporate bankruptcy’.

Under Spain law, the main company of Abengoa was given a grace period of four months to secure arrangements with lenders and creditors.  Abengoa allegedly has billions of dollars in debt.

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