Business
The multinational Abengoa requesting an Chapter 11 bankruptcy
Lost 70% of its market value
(Source: Abengoa)
Between Wednesday and Thursday, the last day that the multinational quoted on the selective IBEX 35 Spanish Exchange, Abengoa has lost 70% of its value. The Seville company, founded in the 40s of last century, employs nearly 27,000 people worldwide, is present on five continents and sells most of its production in America. The company considers its debt by 7,000 million Euros, but an external audit that number rises to 20,000 million Euros.
Spanish Minister of Industry, Jose Manuel Soria, admitted Thursday that the situation of the Seville multinational is "extremely delicate." The minister estimated the liabilities of the company at 27,000 million Euros, its gross debt by 9,000 million Euros and debt with suppliers in more than 5,000 million Euros. If not reached an agreement with its creditors within four months, the multinational will be doomed to bankruptcy, it would be the largest by a private company in the history of Spain.
The company has sent letters to all employees in asking for quiet and confidence in the future of the company. Dedicated to the energy sector, with special attention to renewables, Abengoa is present on five continents and has its main market in America, both North and South. Europe is its second largest market. Almost 9,000 of the 27,000 employees of the multinational working in Spain.
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