U.S. Watchdog Says Abengoa Unit's Reorganization Violates Law

A Chapter 11 bankruptcy exit plan by Abengoa SA's main U.S. subsidiary, Abeinsa Holding Inc, violates the law by shielding the Spanish renewable energy parent from lawsuits, according to the U.S. government's bankruptcy watchdog, Reuters reported. The objection by the U.S. Trustee, which typically oversees the administration of bankruptcy cases and polices them for conflicts, threatens to derail Abengoa's high-stakes debt restructuring plan to avoid its own bankruptcy in Spain. Abengoa, a renewable and engineering company with a global footprint, has already received approval from its shareholders and a Spanish court to cut $10 billion of debt, but parts of the complex plan hinge on the successful reorganization of its U.S. subsidiaries. Read more.