MADRID, March 22 (Reuters) - Spain’s Abengoa is seen winning more time for talks aimed at avoiding bankruptcy as more creditors have agreed to back debt restructuring plan and inject new emergency liquidity, two sources familiar with the matter said on Tuesday.
The engineering and energy company, struggling with a 9.4-billion-euro ($10.6 billion) debt pile, is in pre-insolvency talks with lenders and has until March 28 to win their backing and avoid becoming Spain’s largest ever bankruptcy.
The sources said more than 60 percent of the firm’s creditors were now expected to sign off on the debt agreement by next Monday while Abengoa said on Tuesday it would receive a new credit line of 137 million euros from creditors.
The two elements could convince a Seville court to give Abengoa an additional seven months to reach the 75 percent creditor acceptance threshold for the restructuring plan, the sources added. (Reporting by Tomas Cobos and Julien Toyer; Editing by Paul Day)
Our Standards: The Thomson Reuters Trust Principles.