Investing.com - Financial Markets Worldwide

UPDATE 1-Pacific Exploration gets court approval for $500 mln DIP facility

Published 2016-04-27, 06:28 p/m
© Reuters. UPDATE 1-Pacific Exploration gets court approval for $500 mln DIP facility
FEC
-

(Adds details on initial order)
April 27 (Reuters) - Pacific Exploration & Production Corp
PRE.TO said an Ontario court approved a $500 million
debtor-in-possession financing facility for the Canadian company
and its units, hours after it filed for creditor protection.
The Ontario Superior Court of Justice also approved a $134
million letter-of-credit facility and second-priority lien over
assets under the facility, Pacific Exploration said on
Wednesday.
The company said earlier in the day that it had filed for
protection from creditors under the Companies' Creditors
Arrangement Act, an insolvency law in Canada that allows
companies to restructure their finances and stay in business.
Pacific Exploration said it also plans to file for
protection under Chapter 15 in the United States.
Chapter 15 of the U.S. Bankruptcy Code protects a foreign
company from creditors looking to seize its assets in the
country.
Pacific Exploration reached a deal last week with creditors,
including Catalyst Capital Group Inc, to convert almost all of
its debt to equity after it missed an interest payment due in
March.
Pacific Exploration, formerly called Pacific Rubiales Energy
Corp, has been hurt badly by the prolonged slump in oil prices.
The Toronto Stock Exchange suspended trading of the
company's shares last week.
Until then, the stock had lost 65 percent of its value since
Dec. 17, when Pacific Exploration said lenders had formed a
committee to negotiate the terms of a credit agreement.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.