Spanish Energy Company Goes Busts on Eve of Climate Summit

As President Obama and his entourage, including California Governor Jerry Brown, jet off to Paris on Air Force One to attend the United Nations Paris Climate Change Conference that begins November 30, a new sustainable energy scandal has erupted.

Unfortunately, the Progressive media will cover the administration’s ass rather than cover the story.

Spain’s Abengoa SA, which received $3 billion in administration sustainable energy loans and Export-Import Bank guarantees, announced that it has started bankruptcy proceeding and may soon default on its debt. The company has 607 independent subsidiaries, 17 associates, 28 joint businesses and 244 temporary joint ventures spread out over more than 50 countries.

The complicated legal structure of Abengoa SA means that if it defaults, the Obama Administration cannot look to any of the other subsidiaries to collect on the $3 billion of loans and guarantees. Under Spanish law, the preliminary creditor protection request granted Abengoa SA is a four-month leeway to suspend debt payments while it negotiates with its creditors.

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