Obama-Backed Green Energy Company Goes Bankrupt — After Getting Billions From Taxpayers
The Spanish green energy company Abengoa has filed for Chapter 15 bankruptcy protection in the U.S. after getting billions of dollars from the Obama administration to build solar power and biofuels plants.
Towers of Abengoa solar plant at “Solucar” solar park are pictured in Sanlucar la Mayor, near the Andalusian capital of Seville, southern Spain November 13, 2015. REUTERS/Marcelo del Pozo
Abengoa, which has gotten $2.7 billion in federal subsidies, filed for U.S. bankruptcy protection after already filing for bankruptcy in Spain. In U.S. bankruptcy court, Abengoa can get more favorable terms, such as “the so-called automatic stay that halts lawsuits and prevents creditors from seizing assets,” according to The Wall Street Journal
Abengoa took on nearly $17 billion in debt, according to court filings, after it aggressively expanded in hopes the green energy market would grow much faster than it did. The company has floated a restructuring plan to shed assets until it’s only about $5.5 billion in the hole.
“It is my belief that the relief requested in the petition and related motions is necessary…to protect the U.S. assets of the petitioning group members and to prevent creditors from taking actions in the U.S. under U.S. law in a way that could frustrate the group’s efforts to agree a restructuring,” Borja Fernández de Trocóniz, Abengoa’s lawyer, wrote in court documents obtained by WSJ.