CHICAGO Dec 9 A U.S. judge has agreed to halt
U.S. creditor lawsuits against Abengoa SA, an
international renewable energy company that has been waging a
multi-layer battle for more than a year to avoid becoming
Spain's largest ever corporate failure.
A ruling on a more contentious dispute involving the
Seville-based company's bankrupt U.S. subsidiary and a failed
power plant is still pending.
The company put its U.S. subsidiaries in Chapter 11
bankruptcy and filed for Chapter 15 protection from creditors of
non-U.S. businesses earlier this year while it thrashed out a
$10 billion global debt restructuring deal in Spain.
Last month Abengoa received shareholder and Spanish court
approval for its high-stakes debt-for-equity deal, and on
Thursday won backing for that plan and the halt to U.S. creditor
lawsuits from the U.S. court in Delaware that is overseeing the
U.S. bankruptcy proceedings.
U.S. Bankruptcy Judge Kevin Carey must still rule on a plan
to enable Abengoa's main subsidiary, Abeinsa Holding Inc, a
construction and engineering business, to emerge from U.S.
The decision, expected soon, is a final hurdle for the
Spanish company to complete a global debt plan and avoid its own
At a confirmation trial this week, Abeinsa's bankruptcy exit
plan faced objections from a holdout creditor, Portland General
Electric Corp, that has sued the company over alleged
cost overruns and construction defects at a power plant in
In its lawsuit PGE blamed the project's failures on the
financial problems of Abengoa, the parent company.
Abengoa plans to retain full control of its U.S. units when
they exit bankruptcy in exchange for a roughly $30 million
investment, while creditors will receive only pennies on the
The plan also met with criticism from the U.S. Trustee, a
government watchdog that polices conflicts in bankruptcies. It
objected to provisions that grant broad releases for Abengoa
(Reporting by Tracy Rucinski; Editing by Steve Orlofsky)