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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
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(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.

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