Spain's Abengoa nearing creditor approval for debt plan - source

* Abengoa has until Friday to present acceptance to court

* Company struggling with 9 billion euro financial debt pile

* Approval will avoid Spain's biggest ever bankruptcy (Adds timeline for final accord, background)

By Jose Elías Rodríguez

MADRID, Oct 25 (Reuters) - Renewable energy firm Abengoa is on track for the 75 percent creditor approval needed for its restructuring plan and avoid filing for Spain's biggest ever bankruptcy, a source with knowledge of the deal said on Tuesday.

The Seville-based company borrowed too heavily over the past 10 years to fund an expansion into clean energy and has been negotiating with lenders since November to cut debts of more than 9 billion euros ($10 billion).

Abengoa is unlikely to be able to confirm the acceptance levels until much later on Tuesday, the deadline it set for creditors to agree to the plan, the source said.

"According to the initial count of support, the company is on the right path (to win 75 percent approval)" the source said.

Abengoa set Oct. 25 as a deadline for approval, but it has until Friday to gain the necessary creditor support under a court decision earlier this year.

Under Spanish law, the company needed backing from at least three quarters of all its creditors to go ahead with the restructuring plan, which it presented in August.

Abengoa's creditors include Spain's Santander and Caixabank, international banks such as HSBC and Credit Agricole, and funds specialised in distressed debt like Elliott Management and KKR Credit.

The deal offers lenders the option to convert 70 percent of outstanding debt to equity and refinance the remaining debt over six years in return for 40 percent of the restructured company.

It will also be granted much needed liquidity, as a cash crunch since the beginning of restructuring talks has meant many workers have been left unpaid for months at a time.

($1 = 0.9189 euros) (Writing by Paul Day; Editing by Alexander Smith)