Key takeaways of the updates on Pacific Exploration’s restructuring plan:
- $500m debtor-in-possession financing to be provided as part of restructuring transaction
- Gained court approval of consensual resolution with IFC of stay of extension of proceedings
- Company would be able to continue paying all of suppliers, trade partners and contractors of subsidiaries across jurisdictions
- Restructuring transaction aims to reduce debt and improve its liquidity
- The superior court of Ontario approved an extension of stay of proceedings until 26 August 2016
U.S.-based oil explorer Pacific Exploration & Production Corp stated that its board was in favor of a restructuring proposal submitted by Catalyst Capital Group over a bid by EIG Global Energy Partners.
Previously, EIG Global had submitted a proposal in early May 2016 to provide $250m debtor-in-possession (DIP) financing to Pacific Exploration and sponsor the company’s restructuring.
Catalyst Capital had also agreed to provide $250m in DIP financing in April 2019 to take a 29.3 percent stake in the restructured company.
Pacific Exploration received a $830m bid from private equity firm EIG Global Energy Partners, which argues that its bid was superior to the one selected last month by the company’s board.
The bid comes ahead of its restructuring-related court hearing on Tuesday in Canada.
Previously, the company’s board selected a bid submitted by Catalyst Capital Group, which had support from debt holders holding more than 75% of the company’s debt.
EIG’s new bid was considered to be superior to Catalyst’s offer, according to the company’s CEO R. Blair Thomas.
Washington-based EIG argued in its letter that the total creditor recovery of $830m in its new bid was 67% higher than the Catalyst offer and the implied enterprise value of $1.53bn was 39% higher too.
The $300m in sponsor equity contributed to the company was 20% higher in the new bid than what Catalyst proposed, the letter said. The $550m in total cash contributed to the company was also 10% higher than Catalyst’s. EIG said the binding offer will expire May 31.
Source: Globe and Mail
Canadia oil and gas explorer Pacific Exploration & Production Corp. announced that the company and certain of its subsidiaries filed for creditor protection in Colombia under law 1116 whilst it implements its restructuring plan.
The company has entered into negotiations with lenders which include its bondholders and Catalyst Capital.
Operations of the company are expected to continue normally whilst the company undergoes restructuring.
During the course of restructuring, the company has ensured payment of dues to employees, suppliers and trade partners.
The company’s plan of restructuring has received support from creditors holding approximately 68% of the aggregate principal amount of its debt.
Source: Company Press Release
Canada-based oil and gas explorer Pacific Exploration & Production Corp., announced that its Restructuring Plan was supported by bondholders holding c. 67.8% of the company’s debt.
Previously, on 27 April 2016, the company and certain of is subsidiaries had obtained an Initial Order from the Superior Court of Justice in Ontario under the Companies Creditors Arrangement Act.
Bondholders, who supported the restructuring plan by 29 April 2016, would receive a 2.2% stake in the reorganized company’s equity.
Further, the company has extended the restructuring deadline until 6 May 2016.