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EIG Pacific Holdings extends deadline for Pacific E&P tender offer

Published 2016-02-10, 08:39 p/m
© Reuters. EIG Pacific Holdings extends deadline for Pacific E&P tender offer
FEC
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By Jessica DiNapoli
NEW YORK, Feb 10 (Reuters) - Investment firm EIG Pacific
Holdings Ltd said on Wednesday it had extended the deadline and
changed some terms for its offer to buy nearly all the debt of
Colombia's largest private oil producer, Pacific Exploration &
Production Corp. PRE.TO .
The deadline for the offer for Pacific's $4.1 billion in
debt has been extended until March 24 from Feb. 10. As part of
the new offer, EIG, a subsidiary of Harbour Energy Ltd, said it
had reduced the amount it is willing to pay bondholders because
oil prices have continued to drop and Pacific E&P's financial
condition has deteriorated.
EIG hopes to ultimately take control of Pacific, which is
based in Toronto. The deal is also conditioned on insolvency
proceedings beginning.
"Our goal remains to keep Pacific intact and avoid the
death-spiral the company appears to be facing," said EIG Chief
Executive R. Blair Thomas. "It seems apparent that Pacific is
insolvent and that a bankruptcy filing is imminent."
Pacific has been struggling as oil prices have plummeted,
and state-owned Ecopetrol did not renew its lease on an
oilfield.
The extension of the deadline for the tender offer comes as
Pacific tries to avoid default on bond payments. The company is
in a 30-day grace period for payments missed in January. Its
lenders also gave it waivers that expire at the end of February.
Ratings agencies have lowered Pacific's ratings to default
level.
A limited number of Pacific bondholders participated in the
tender offer EIG first proposed.

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