ABO Energy suspends interest on €80 million bond amid restructuring talks

Key Facts

ABO Energy has decided to suspend the interest payment due on its bond on November 8, 2026, in a move it said was intended to avoid jeopardizing ongoing restructuring talks. The decision concerns a bond with €80 million in outstanding principal and an annual interest rate of 7.75%, according to a company disclosure published on November 6. The company is in talks with its major financial creditors over a comprehensive restructuring based on a report prepared under the IDW S6 standard. In its statement, it said: "To avoid jeopardizing the ongoing negotiations, the company has decided to suspend the interest payment." It confirmed that the decision does not affect its day-to-day operations.

The interest suspension is a step tied to the restructuring negotiations, while the company said the bond terms do not give holders the right to terminate because of non-payment of interest. This provision sets out what bondholders can do under the issuance terms in this situation, as talks with major creditors continue. The company did not disclose a final outcome of the talks or a timetable for approving a restructuring plan. The plan may include contributions from bondholders, other financing providers and shareholders, according to the company. The parties that could take part in the financing solution therefore include creditors and shareholders alongside the company.

ABO Energy said the interest suspension does not affect its day-to-day operations, including its dealings with customers, suppliers and employees. The company is working to address its financial obligations and negotiate a restructuring with its financial partners. Creditors under its main financing arrangements entered into a standstill agreement in January 2026, giving the company time to develop a viable plan without the exercise of rights based on potential termination grounds. The company and its financial partners then extended the agreement until November 30, 2026. In its announcement of the extension, the company said financial adviser Rothschild & Co was working on proposals for a future financing solution.

The financial pressure stems from a downgrade to the company’s 2025 outlook. In November 2025, ABO Energy cut its forecast from net profit of between €29 million and €39 million to a net loss of about €95 million. In January 2026, it said it expected an annual loss of about €170 million, attributing the outlook to sharp changes in market conditions, including impairments, revenue changes and lower margins on renewable energy project development. The company also linked its revised outlook to delays of about €40 million and valuation adjustments of about €35 million, amid changes in the German and international markets. These figures remain estimates published in earlier periods, while the November 6 announcement focuses on the interest payment suspension and ongoing talks.

Bondholders approved measures supporting the restructuring by a majority of more than 99% at a meeting in March 2026. The measures included suspending the restriction on providing security under the bond terms until December 31, 2026. According to the company’s announcement of the meeting results, the measure gives it additional flexibility under its financing arrangements. Across its business, ABO Energy said in January that its wind, solar and battery project portfolio amounted to about 30 gigawatts, with more than a third of that capacity in Germany and France. The company provided these figures in an earlier announcement about the standstill agreement and restructuring plan.

The company said it would inform the capital market and the public about developments in the negotiations in line with the relevant legal requirements. November 30, 2026, when the extended standstill agreement expires, is a key near-term date in the negotiations. In July, the company said Rothschild & Co was working on proposals for a future financing solution on behalf of its financial partners. The interest suspension announcement did not set a date for completing the restructuring or detail the potential contributions from each party. The company is expected to publish further information about the negotiations as required by law.