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Pacific Exploration seeks creditor protection in Canada

Published 2016-04-27, 11:59 a/m
© Reuters. Pacific Exploration seeks creditor protection in Canada
FEC
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April 27 (Reuters) - Pacific Exploration & Production Corp
PRE.TO and its units filed for protection from creditors in
Canada after failing to cope with a prolonged slump in oil
prices.
The company missed an interest payment due on March 28,
making it the first Toronto-listed oil and gas company in the
past one year to delay a payment.
Pacific Exploration reached a deal with debtholders,
including Catalyst Capital Group Inc, last week to convert
almost all of its debt to equity.
The company, formerly known as Pacific Rubiales Energy Corp ,
said on Wednesday it had filed for creditor protection under the
Companies' Creditors Arrangement Act, an insolvency law in
Canada that allows companies to restructure their finances and
stay in business.
Pacific Exploration also said it planned to file for
protection under Chapter 15 of the U.S. Bankruptcy Code at a
later date.
Under U.S. bankruptcy laws, Chapter 15 grants a foreign
company protection from creditors looking to seize its assets in
the country.
The Toronto Stock Exchange suspended the trading of the
company's shares last week. Until then, the stock had lost 65
percent since Dec 17, when the company said lenders had formed a
committee to negotiate the terms of a credit agreement.

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