MADRID (AP) — Spanish renewable energy and engineering giant Abengoa says it has reached the basis of a debt-restructuring agreement with bank creditors and bondholders in a bid to avoid one of the country's largest insolvencies.
Abengoa, which began bankruptcy protection proceedings in November, said in a statement Thursday that under the deal it will give creditors a 55 percent stake in the company in exchange for up to $2 billion in loans over five years.
It said creditors would exchange 70 percent of Abengoa's debt for a 35 percent stake in the new company.
The deal has to be approved this month by Abengoa management and 75 percent of creditors.
Abengoa, which has some 24,000 employees worldwide, reported debts of over $10 billion.