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Abengoa Bioenergy gets $41m from bankruptcy court to resume Nebraska operations

Spanish renewable energy giant Abengoa Bioenergy said a US bankruptcy court has approved financing to help the firm restart its Nebraska production operations.

The US Bankruptcy Court for the Eastern District of Missouri issued an order approving “up to $41 million of debtor in possession financing for the six Abengoa Bioenergy companies that had recently filed for Chapter 11 bankruptcy protection”. 

The six Abengoa ethanol plants that filed for bankruptcy protection are located in Nebraska, Kansas, New Mexico, Illinois and Indiana.

In a press statement seen by Bioenergy Insight, Abengoa said: “The order provides longer term ongoing financing for the payroll and other ordinary course operational expenses during the pendency of the case, and specifically contemplates funding to resume production operations at Abengoa Bioenergy's two Nebraska plants located in Ravenna and York.”

The court approved several motions filed by Abengoa for the loan and other relief in order to fund payroll and operational expenses that would keep the company in business. 

"Resuming production operations at our Nebraska plants is an important step which we believe will help maximize the value of the assets for the best interests of all stakeholders," said Abengoa president and CEO, Antonio Vallegspir.

Elsewhere, in Spain a bankruptcy court has granted Abengoa until 28 October, 2016, to approve its restructuring plan through a process that protects the company from claims from creditors.

In a statement, Abengoa said that these changes are expected to streamline operations and maximise resources.





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