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Obama-Backed Green Energy Company Goes Bankrupt — After Getting Billions From Taxpayers

Michael Bastasch, The Daily Caller
Abengoa, which has gotten $2.7 billion in federal subsidies, filed for U.S. bankruptcy protection after already filing for bankruptcy in Spain. In U.S. bankruptcy court, Abengoa can get more favorable terms, such as “the so-called automatic stay that halts lawsuits and prevents creditors from seizing assets,” according to The Wall Street Journal.

Abengoa took on nearly $17 billion in debt, according to court filings, after it aggressively expanded in hopes the green energy market would grow much faster than it did. The company has floated a restructuring plan to shed assets until it’s only about $5.5 billion in the hole.

“It is my belief that the relief requested in the petition and related motions is necessary…to protect the U.S. assets of the petitioning group members and to prevent creditors from taking actions in the U.S. under U.S. law in a way that could frustrate the group’s efforts to agree a restructuring,” Borja Fernández de Trocóniz, Abengoa’s lawyer, wrote in court documents obtained by WSJ.
Abengoa, which Bloomberg has referred to as Spain’s “Teetering Sun King,” got $2.7 billion in DOE loan guarantees since 2010 for two solar energy projects and a massive cellulosic biofuels plant that has yet to announce production levels or sell any product it produces. These projects were financed with subsidized loans from the Treasury Department’s Federal Financing Bank (FFB).