US Taxpayer Faces $230 Million Loss As Spain’s ‘Solyndra’ Files For Creditor Protection, by Tyler Durden

Crony capitalism in the “green” variety. From Tyler Durden at zerohedge.com:

“The future of the company seems very black,” notes on trader as the bonds and stocks of Spanish renewbles form Abengoa lives up to its name and files for creditor protection, just as we warned was likely. With the stock crashing 70% to 28c and 4-month bonds trading at just 22c on the dollar, market participants face an almost total loss.. but, as we detailed previously, it is the American taxpayer – who thanks to Ex-Im Bank loans to keep this zombie alive – face losses of $230 million as Spain’s Solyndra exposes another symptom of the Oligrachic ignorance of where the money comes from.

Restructring efforts of the past have failed, as Bloomberg reports, Abengoa SA’s bonds and stock tumbled to records after the embattled renewable-energy company said it was seeking preliminary protection from creditors following the breakdown of talks with a new investor.

Abengoa’s 500 million euros ($530 million) of bonds maturing in March fell as much as 51 cents on the euro to 12 cents on Wednesday, while its 550 million euros of bonds due February 2018 dropped as much as 32 cents to 9.8 cents, according to data compiled by Bloomberg. Its B shares plunged as much as 69 percent to 28 euro cents.

Abengoa, which employs more than 24,000 people worldwide, has been seeking to reassure investors that it can generate enough cash to service its debt pile of about 8.9 billion euros of consolidated gross debt. The Seville-based company said earlier this month that Gonvarri Corporacion Financiera, a unit of industrial group Corporacion Gestamp, would become its biggest shareholder after agreeing to acquire a 28 percent stake by injecting new funds.

“The future of the company seems very black,” said Carlos Ortega, a trader at Beka Finance Sociedad de Valores SA. “It has a tremendous amount of debt which no bank wants to refinance and now even its partners are backing out.”

To continue reading: US Taxpayer Faces $230 Million Loss

 

One response to “US Taxpayer Faces $230 Million Loss As Spain’s ‘Solyndra’ Files For Creditor Protection, by Tyler Durden

  1. Pingback: They Said That? 12/16/15 | STRAIGHT LINE LOGIC

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