December 24, 2015 / 1:43 PM / 4 years ago

Spain's Abengoa signs accord with creditors for emergency loan

A tower belonging to the Abengoa solar plant is seen at the "Solucar" solar park in Sanlucar la Mayor, near the Andalusian capital of Seville, southern Spain December 9, 2015. REUTERS/Marcelo del Pozo

MADRID (Reuters) - Spanish thermal solar power and engineering firm Abengoa signed an agreement with its creditor banks on Thursday for a 106-million-euro ($116.1 million) credit line to help avert what would be Spain’s biggest-ever bankruptcy.

The loan will be used for general corporate necessities, Abengoa said in a statement to the stock market regulator. It is using some shares held in the affiliate Abengoa Yield as collateral, it said.

The banks also agreed to free up a further 7 million euros related to a previous loan, backed by the Abengoa Yield shares, a source familiar with the matter said.

The guarantees relate to around 15 percent of Abengoa Yield, according to Reuters calculations based on information from two sources.

An additional 100 million euros could be granted by creditors next month if Lazard, which is advising Abengoa, puts forward a credible restructuring plan by Jan. 18, banking sources told Reuters last week.

Reporting by Tomas Cobos; Writing by Paul Day; editing by Adrian Croft

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