abengoa struggle casts cloud on jobs banks in spain and abroad
Last Updated : GMT 13:14:30
Arab Today, arab today
Arab Today, arab today

Abengoa struggle casts cloud on jobs, banks in Spain and abroad

Arab Today, arab today

Arab Today, arab today Abengoa struggle casts cloud on jobs, banks in Spain and abroad

Spain's flagship renewable energy giant Abengoa
Madrid - AFP

As Spain's flagship renewable energy giant Abengoa teeters on the edge of bankruptcy, concerns are mounting over the fate of thousands of employees and its numerous projects around the world, just weeks ahead of crux general elections.

The group filed for protection from its creditors late last month, giving it four months to find a solution to its astronomical debt or go bankrupt and become Spain's biggest-ever corporate failure.

Since then, creditors, unions and the government have been trying to get a clearer idea of the group's financial situation, and a grouping of seven banks has appointed auditors KPMG to comb through the accounts of the company and its 600-plus subsidiaries, according to the Bloomberg financial news agency.

"They are very indebted... their total liabilities could be more than 25 billion (euros)," Industry Minister Jose Manuel Soria estimated Friday.

As the December 20 general elections approach, Prime Minister Mariano Rajoy has yet to comment on the possibility of a Spanish company that employs 28,700 people globally -- including nearly 7,000 in his own country -- going down.

The government has ruled out any form of state bailout, with Economy Minister Luis de Guindos stressing the need "to find out exactly what the accounting and debt situation of the company is".
- Investors already burnt -

The world player in solar and wind power, biofuels and water management says it had a gross debt of nearly nine billion euros at the end of September.

But lawyers who filed a legal complaint against the board on Monday say it could stand at 25 billion euros.

"Investors have been burnt by other bankruptcies in Spain, when debt was found hidden away," said ISM Capital analyst Antoine Bourgault.

He pointed for instance to the surprise, high-profile bankruptcy of Spanish packaged seafood giant Pescanova in 2013, which had secretly amassed a pile of debt.
Unions too are waiting, worried about mass layoffs.

Francisco Carbonero, head of the CCOO union in the southern region of Andalucia where Abengoa is headquartered -- said he was holding out for the KPMG report.

"For the moment, they haven't come out with a redundancy plan," he said, adding nevertheless that a large number of short-term contracts had not been renewed over the past few weeks.

The group, which is present in some 20 countries, makes nearly 87 percent of its turnover abroad -- with North America its largest market, followed closely by South America.

Already in Brazil, unions are concerned, with the Sintepav grouping that represents workers in the country's construction sector saying it is expecting 5,000 jobs to be cut.
- Small-scale shareholders -

Spain's banking sector, which is only just emerging from the devastating crisis that saw it rescued with a 41-billion-euro eurozone bailout, could also be be hurt.

"Banks' bottom-line profits this year will likely fall short of our forecasts, as they start provisioning for the potential losses they could face," said the Standard & Poors ratings agency.

"Given the company's large scale... and its high leverage... Abengoa is a significant exposure for most of the Spanish banks we rate," it said.

But it added that the pressure was not exclusively on Spanish banks, as the group also had access to foreign lenders given its large worldwide footprint.

Small-scale shareholders fear they will get burnt again.

"After having overcome the financial crisis, with the hard costs that implied for individual savers, and having witnessed fraud directly linked to bad business practices, it seemed that the wind was changing," said Javier Cremades, head of Aemec, an association representing minority shareholders.

"But unfortunately that has not been the case," he wrote in the El Pais daily.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

abengoa struggle casts cloud on jobs banks in spain and abroad abengoa struggle casts cloud on jobs banks in spain and abroad

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

abengoa struggle casts cloud on jobs banks in spain and abroad abengoa struggle casts cloud on jobs banks in spain and abroad

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Air China suspends flights to North Korea

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria opposition meets in Riyadh

GMT 06:23 2017 Thursday ,23 November

Syria opposition meets in Riyadh
Arab Today, arab today Online exhibit shows hidden depths of

GMT 11:45 2017 Thursday ,23 November

Online exhibit shows hidden depths of
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Srebrenica women cry tears of joy

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday