Today shares of Abengoa Yield PLC (NASDAQ:ABY) have been in a freefall as the original plans for Gonvarri Steel Industries to inject as much as $374 million into the firm have been canceled. The funding would have allowed Abengoa Yield PLC to manage their debt much easier. Instead the company will now have to try and come up with an agreement with their creditors to enable financial viability moving forward.
The reasoning behind Gonvarri’s decision to forego this planned investment remains unclear at this time. The stock is down 8.75% or $1.49 after the negative news, hitting $15.53 per share. About 4.32M shares traded hands or 401.22% up from the average. ABY has declined 49.93% since April 23, 2015 and is downtrending. It has underperformed by 48.80% the S&P500.
Abengoa Yield plc is an engineering and clean technology company. The company has a market cap of $1.77 billion. The Firm owns, manages, and acquires renewable energy, conventional power, electric transmission lines, and other contracted revenue-generating assets, focused on North America and South America (Peru, Chile, Brazil and Uruguay), as well as Europe (Spain). It has 55.07 P/E ratio. The Company’s business sectors include renewable energy, which includes its activities related to the production electricity from solar power and wind plants; Conventional power, which includes its activities related to the production of electricity and steam from natural gas and electric transmission lines, which includes its activities related to the operation of electric transmission lines.