{"id":14837,"date":"2015-11-27T07:52:11","date_gmt":"2015-11-27T12:52:11","guid":{"rendered":"http:\/\/olduvai.ca\/?p=14837"},"modified":"2015-11-27T07:52:27","modified_gmt":"2015-11-27T12:52:27","slug":"spain-braces-for-its-biggest-corporate-insolvency-ever","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=14837","title":{"rendered":"Spain Braces for its Biggest Corporate Insolvency\u2026 Ever!"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/11\/26\/spain-braces-for-its-biggest-corporate-insolvency-ever\/\" target=\"_blank\">Spain Braces for its Biggest Corporate Insolvency\u2026 Ever!<\/a><\/h3>\n<p class=\"entry-meta\"><strong>Blood on the Bourse<\/strong><\/p>\n<\/header>\n<div class=\"entry-content\">\n<p>Spain is about to experience its biggest corporate insolvency ever. Unlike Bankia and all of Spain\u2019s other bankrupt savings banks, Abengoa, a Seville-based multinational specialized in renewable energy and \u201cenvironmental services,\u201d is unlikely to receive a taxpayer-funded bailout \u2013 at least not just yet, not with general elections looming in less than a month\u2019s time.<\/p>\n<p>Following yesterday\u2019s announcement that the company was seeking preliminary protection from creditors, Abengoa\u2019s bonds and shares went into freefall. It was a financial bloodbath. According to\u00a0<a href=\"http:\/\/www.highyieldbond.com\/\" target=\"_blank\">S&amp;P Capital IQ LCD<\/a>, its euro-denominated 8.5% notes due 2016\u00a0plunged 38.5 points to 25.5 cents on the euro, after having been up at 93 cents on the euro only two weeks ago.<\/p>\n<p>The U.S. dollar-denominated paper also suffered huge price declines in block trades. The engineering \u201cFinance\u201d unit\u2019s 8.875% notes due 2017 plummeted\u00a042.5 points, to 16.5 cents on the dollar, while the\u00a0<em>pari passu<\/em>7.75% notes due 2020 plunged from 45 before the announcement to 15 cents on the dollar.<\/p>\n<p>On Spain\u2019s benchmark stock index, the IBEX 35, Abengoa\u2019s B shares \u2013 valued just over a year ago at \u20ac4\u00a0\u2013 plunged as much as 69% to \u20ac0.28\u00a0before staging a brief dead-cat bounce. At the time of writing today, the B shares have fallen a further 25%.<\/p>\n<p>With total debt of nearly $9 billion and growing, Abengoa yesterday filed under article 5 bis of the Spanish insolvency law. As WOLF STREET\u00a0<a href=\"http:\/\/wolfstreet.com\/2015\/08\/04\/at-the-leading-edge-of-financialization-and-collapse\/\" target=\"_blank\">reported<\/a>\u00a0a few months ago, the company was undone by its mad rush for growth at any cost as well as its unconstrained embrace of the dark arts of financialization.<\/p>\n<p>Even if Abengoa was to find a last-minute guardian-angel investor to take up some of the slack, the chances of it being able to find enough cash to service its debt pile are rice-paper thin. The company\u2019s losses, slumping shares, and difficulty accessing financing could generate \u201csignificant doubts\u201d over its ability to keep operating, warned its chief auditor, Deloitte.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Spain Braces for its Biggest Corporate Insolvency\u2026 Ever! Blood on the Bourse Spain is about to experience its biggest corporate insolvency ever. Unlike Bankia and all of Spain\u2019s other bankrupt savings banks, Abengoa, a Seville-based multinational specialized in renewable energy and \u201cenvironmental services,\u201d is unlikely to receive a taxpayer-funded bailout \u2013 at least not just [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,200,5660,5809,3076,743,4255],"class_list":["post-14837","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-default","tag-don-quijones","tag-financialisation","tag-insolvency","tag-spain","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14837"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14837\/revisions"}],"predecessor-version":[{"id":14839,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14837\/revisions\/14839"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}