Spanish renewables firm Abengoa SA has filed insolvency proceedings at a court in Seville to reach an agreement on its almost €6 billion in debt.

Abengoa enters the proceedings with negative equity of €388 million, which triggered an event of default.

The company already announced the negative equity during its 2019 results presentation on May 19, when it also reported a net loss of €517 million. The company had gross financial debt of €5.9 billion. Certain of its projects were being directly affected by COVID-19 due to lack of supplies, Abengoa added at the time.

The company had been in negotiation with creditors to modify the terms and conditions of different debt tranches including its A3T Convertible Bond, while also seeking new financing in the amount of €250 million for a five-year term from financial institutions covered by a guarantee under Spain’s emergency government loan scheme (ICO credit agreement).

Abengoa completed its second financial restructuring April 26, 2019, in a deal that refinanced and amended the previously restructured debt and put new debt securities in place, including liquidity of up to €97 million of convertible bonds, and additional bonding lines for up to €140 million.

The first €9 billion restructuring was completed in March 2017, after the company filed for pre-insolvency proceedings in Spain in 2015. This restructuring resulted in creditors taking control of the firm after implementing an agreement under Spanish homologación judicial proceedings, in addition to multiple proceedings in other jurisdictions, including Chapter 11 in the U.S., and an English Company Voluntary Arrangement in the U.K.

Meanwhile, the Spanish National Court is currently investigating Abengoa, as well as Abengoa executives, including former CEO Manuel Sánchez Ortega, and accounting firm Deloitte, over alleged accounting fraud before the firm reached its first restructuring agreement.