May 9 (Reuters) - EIG Global Energy Partners said it has
submitted a binding proposal to provide $250 million
debtor-in-possession (DIP)financing to Pacific Exploration &
Production Corp PRE.TO and sponsor the company's
restructuring.
Compared with the DIP financing proposed by Catalyst Capital
last month, EIG's proposed financing had a lower equity
conversion, EIG said on Monday.
Oil producer Pacific Exploration said last month it had
reached a deal with debtholders, including Catalyst Capital to
convert almost all of its debt to equity.
An Ontario court in April approved a $500 million
debtor-in-possession financing facility for the Canadian company
and its units.
Catalyst had agreed to provide $250 million in DIP financing
to own a 29.3 percent stake in the restructured company.
EIG said it would also give Pacific Exploration an
additional $75 million to improve the reorganized company's
balance sheet and fund its break-up fee for the deal with
Catalyst.