Abengoa Bioenergy US Holdings Objection Filed


Compania Espanola de Financiacion de Desarrollo, Cofides and First NBC Bank filed with the U.S. Bankruptcy Court separate objections to Abengoa Bioenergy US Holdings’ First Disclosure Statement.

First NBC Bank asserts, “Debtors’ Amended Disclosure Statement cannot be approved because it does not contain the baseline level of disclosures mandated by Section 1125 of the Bankruptcy Code and does not provide creditors such as First NBC with adequate information to make an informed judgment about the Debtors’ Plan.”

The objection continues, “For example, nothing in the Amended Disclosure Statement or the accompanying materials gives the creditors any information about, or explanation of, among other things: the economic justification for the proposed separate substantive consolidations of the Debtors into the ABI/ABIL Debtor Group and the Bioenergy Debtor Group; the economic justification for the 100% payment to creditors of the proposed ABI/ABIL Debtor Group, while paying less than 34% to the unsecured creditors of the Bioenergy Debtor Group; whether any consideration has been or will be received by the Bioenergy Debtor Group for the approximately $646.5MM that flowed upstream from the Bioenergy Debtor Group to Abengoa SA and other Abengoa entities that are not debtors in these Missouri bankruptcy cases; what consideration, if any, flowed downstream to the Bioenergy Debtor Group from the lenders that hold the MRA Guarantee Claims that would support the upstream guaranties of the Abengoa SA debt giving rise to the MRA Guarantee Claims and the now-proposed settlement with the holders of those claims; and whether the approximately $69MM debt owed by Abengoa Bioenergy Biomass of Kansas, an apparently solvent entity, will be repaid to the Bioenergy Debtor Group.”

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