Abengoa Bioenergy US Holdings filed with the U.S. Bankruptcy Court a Third Amended Joint Plans of Liquidation and related Disclosure Statement.
According to the Disclosure Statement, “Bioenergy Debtors ABC and ABNE provided guaranties on the Notes and certain syndicated and other debt instruments entered into or issued by Abengoa, S.A., Abengoa Finance, S.A.U., Abengoa Concession Investment Limited, or Abengoa Greenfield, S.A., totaling approximately $6.5 billion. The Plan as currently proposed, including the proposed treatment of the MRA Guarantee Claims, is premised on substantive consolidation and provides Bioenergy General Unsecured Creditors with a substantially higher recovery than they could otherwise expect to receive. The most important consideration for the Holders of the MRA Guarantee Claims was that their entitlement to the $32.5 million.”
In addition, “The proposed settlement allows the Plan Proponents to avoid costly, time consuming, and potentially uncertain litigation, whereby if unsuccessful certain creditors would receive no recovery in 2017 and little, if any recovery in 2018, or even later if the parties engage in protracted litigation. As reflected in the Liquidation Analysis…without the proposed settlement of the MRA Guarantee Claims, most of the available proceeds for distribution to Holders of Bioenergy General Unsecured Claims would have been distributed to the Holders of MRA Guarantee Claims, leaving Holders of Bioenergy General Unsecured Claims with a small fraction of their projected recovery under the Plan as proposed.”
The Court scheduled an April 26, 2017 confirmation hearing.
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