The Chief Executive Officer of the Spanish renewable energy giant, Abengoa, Santiago Seage has resigned just days two after news emerged that the firm was close to bankruptcy.
Abengoa was named last week by the Jamaica Public Service Company, JPS, as the preferred bidder for the construction of the 190 megawatt power plant in Old Harbour St. Catherine.
But this week, the company filed for bankruptcy protection proceedings, after a Spanish technology firm announced it was pulling out of an agreement to invest in the energy giant.
As we hear in this report from Cecil Thoms, JPS is now locked in a meeting with officials of Abengoa, to determine whether they need to move on to a new bidder.
When news broke on Wednesday, that Abengoa had to file for bankruptcy protection, a member of the Electricity Sector Enterprise Team, ESET, Professor Alvin Wint, indicated that JPS should find a new entity to build the power plant.
But JPS President and CEO, Kelly Tomblin, told our newscenter, that it’s too soon to pull the plug on the company.
She says it’s early days and she’s cautiously watching the developments.
Today, Abengoa’s CEO, Santiago Seage, stepped down after only six months on the job.
It’s created more uncertainty around the Seville-based company.
According to Bloomberg News, Abengoa’s bondholders are now joining forces, after the company asked them to form a committee so debt talks can begin to avoid what could be the largest insolvency in Spain’s history.
The company is some 9-billion Euros in debt.
Speaking with our newscenter today, Ms. Tomblin says JPS has called the meeting to seek answers from Abengoa.
Ms. Tomblin says depending on the outcome of today’s meeting, JPS will decide whether they need to move on to the next bidder.
She emphasizes that the company will not need to start the process over.