Picture: REUTERS
Picture: REUTERS

MADRID — Indebted Spanish energy group Abengoa needs €826m of fresh cash to make it until the end of the year and a further €304m in 2017, the company said.

The engineering and renewable energy company could become the country’s biggest bankruptcy to date if it fails to agree on a wide-ranging debt restructuring with creditor banks and bondholders by March 28.

Talks had made little headway after Abengoa delayed the presentation of a new viability plan to refocus the firm on its core engineering and construction business, while lenders had expressed doubts about the group’s liquidity needs.

Under the plan, detailed for the first time late on Tuesday, Abengoa said it also would need new financial guarantees of €525m in order to develop existing projects in 2016.

It also estimated its enterprise value at €5.4bn, although this figure takes into account forecasts until 2020 that may be hard to achieve.

The plan was drafted by consultancy firm Alvarez Marsal, which said, however, that it had not carried out a due diligence on the firm’s financial situation, and had focused on the group level without analysing Abengoa’s multiple legal entities.

A banking source said lenders would now review the plan and give their opinion on it, most likely towards the end of next week.

Meanwhile, Abengoa’s former chairman and main shareholder, Felipe Benjumea, was ordered by a judge to surrender his passport as there was a "serious risk" he might attempt to flee. He will also have to report to court twice a month.

Spain’s high court has been investigating allegations of mismanagement levelled against Mr Benjumea.

Abengoa also said it would hold a conference call to explain its new plan at 5pm GMT on Wednesday.