On December 24 the creditors of Spanish energy giant Abengoa gave the company a financial lifeline in the form of a 106 million (US$116 million) loan.
The 15-month loan will be secured via shares of Abengoa Yield, with a value estimated by Reuters at more than double that of the loan, or 15% of Abengoa Yield’s total stock.
Abengoa will also be using its yieldco stock to secure another 165 million loan that it entered into in September.
The company says that it will use proceeds from its new loan for general corporate purposes, which Reuters says will include paying salaries and maintaining current operations.
Abengoa began insolvency proceedings in late November, and according to Bloomberg Business currently has 8.9 billion in gross debt. The company has until the end of March to reach an agreement with creditors, which is around the time that the new loan matures.