Abengoa Bioenergy creditors object to $97.93 million of Cofides claims

By Caroline Salls

Pittsburgh, March 13 – Abengoa Bioenergy US Holding, LLC’s official committee of unsecured creditors filed an adversary proceeding Monday that seeks subordination of interest and serves as the committee’s objection to $97.93 million of claims filed by Compania Espanola de Financiacion del Desarrollo, Cofides, SA (Cofides), according to a filing with the U.S. Bankruptcy Court for the Eastern District of Missouri.

The committee said fund manager Cofides filed a $48.46 million claim against Abengoa Bioenergy US Holding and a $49.47 million claim against Abengoa Bioenergy Operations, LLC.

The committee said it is objecting to the claims to the extent they been satisfied through recoveries under a master restructuring agreement in the form of cash, notes, equity or other consideration and “on the basis that the Cofides claims are not supported by a sufficient detailing of the components of the claims and may not include post-petition interest.”

According to the complaint, Cofides contends that it validly exercised its put right under a stock purchase option agreement on Aug. 5, 2016, and, as a result, it no longer holds any equity interests in the Abengoa debtors or their affiliates.

In addition, Cofides claims that Abengoa Bioenergy and the put guarantors have not paid the put price. Cofides said the claims cover damages incurred because the put price was not paid.

However, the committee said in its complaint that the Cofides claims should be subordinate to all general unsecured claims and have the same priority as common stock under Abengoa Bioenergy’s Chapter 11 plan because Cofides’ interest qualifies as an equity investment.

“[Cofides’] present claim arises from a 13th-hour attempt to sell that equity interest,” the committee said.

Based in Chesterfield, Mo., Abengoa Bioenergy is an ethanol producer. It filed for bankruptcy on Feb. 24, 2016 under the Chapter 11 case number 16-41161.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.