April 19 (Reuters) - Oil and gas producer Pacific
Exploration and Production Corp PRE.TO said it had entered
into a restructuring agreement with private-equity fund Catalyst
Capital Group Inc.
The deal will result in a net reduction of about $5 billion
of its debt and about $253 million in annual interest costs, the
company said.
Pacific Exploration said its creditors, including Catalyst,
will provide $500 million of debtor-in-possession financing.
The company also said its operations, along with those of
its subsidiaries, would not be affected by the restructuring.
Pacific, hurt by a prolonged slump in crude prices, said
last week its board had agreed to negotiate a financial
restructuring involving Catalyst Capital.
The company skipped an interest payment last month, making
it the first Toronto-listed oil and gas company in the last one
year to delay a payment.
On Monday, Pacific said the Toronto Stock Exchange was
reviewing its eligibility for continued listing of its common
shares.