Reuters reports that Abengoa made the move after an investor wouldn't "inject fresh capital into the energy firm, sending its share price tumbling by 60 percent."
From the report:
Under Spanish law, companies can enter into pre-insolvency proceedings, giving them up to four months to reach an agreement with creditors to avoid a full-blown insolvency process and a potential bankruptcy.
Failure by Abengoa to reach such a deal could lead to Spain's largest bankruptcy on record.
The San Antonio Express-News reports that the impact to Abengoa Vista Ridge LLC, a subsidiary of the company, is unclear, but notes that the story is developing.