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UPDATE 1-Pacific Exploration in restructuring deal with Catalyst Capital

Published 2016-04-19, 07:01 a/m
© Reuters. UPDATE 1-Pacific Exploration in restructuring deal with Catalyst Capital
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April 19 (Reuters) - Pacific Exploration and Production Corp
PRE.TO said it reached a deal with debtholders, including
Catalyst Capital Group Inc, to convert almost all of its debt to
equity as it looks to fight a prolonged slump in oil prices.
The move comes after Pacific Exploration said last week that
its board had agreed to negotiate a financial restructuring,
involving the private equity fund, after the oil and gas company
missed an interest payment.
About $5.3 billion of the company's debt will be exchanged
for 58.2 percent of its common shares under the restructuring
deal, Pacific Exploration said.
Catalyst has agreed to provide half of the $500 million in
debtor-in-possession financing and will own a 29.3 percent stake
in the restructured company, Pacific Exploration said.
Pacific Exploration said its operations, along with those of
its subsidiaries, would not be affected by the restructuring.
The company suffered a major setback in March last year,
after Colombia's state-run Ecopetrol ECO.CN refused to extend
its contract to operate the country's highest-producing Rubiales
oilfield.
Pacific Exploration said on Monday that the Toronto Stock
Exchange was reviewing its eligibility for continued listing of
its common shares.

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