05:33:01 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Pacific Exploration & Production Corp
Symbol PRE
Shares Issued 316,094,858
Close 2016-04-18 C$ 0.64
Market Cap C$ 202,300,709
Recent Sedar Documents

Pacific E&P seeks debt deal recognition in Colombia

2016-05-03 19:27 ET - News Release

Mr. Frederick Kozak reports

PACIFIC ANNOUNCES THAT IT HAS FILED FOR RECOGNITION PROCEEDING UNDER LAW 1116 IN CONNECTION WITH PREVIOUSLY ANNOUNCED COMPREHENSIVE RESTRUCTURING INVOLVING CATALYST CAPITAL AND PACIFIC'S NOTEHOLDERS AND LENDERS

Pacific Exploration & Production Corp. and the Colombian branches of the following subsidiaries of the company: (i) Meta Petroleum Corp.; (ii) Pacific Stratus Energy Colombia Corp.; and (iii) Petrominerales Colombia Corp. -- collectively, the Colombian filers -- have filed a request for recognition in Colombia under Law 1116 of: (a) the application for protection filed on April 27, 2016, under the Companies' Creditors Arrangement Act (Canada) (CCAA) with the Superior Court of Justice in Ontario; and (b) the initial order obtained from the court on April 27, 2016, pursuant to the CCAA in connection with the implementation of the comprehensive restructuring transaction previously announced with: (i) The Catalyst Capital Group Inc., on behalf of investment funds managed by it; (ii) certain holders of the company's senior unsecured notes; and (iii) certain of the company's lenders under its credit facilities, which will significantly reduce debt, improve liquidity and best position the company to navigate the current oil price environment.

The company also announced that the Colombian superintendence of corporations increased the level of supervision and monitoring over the Colombian filers and the Colombian branch of Grupo C&C Energia (Barbados) Ltd. (collectively, the Colombian branches) that it has been exercising since February, 2015, by formally assuming "control" over such branches pursuant to a resolution issued by the superintendence under File 36241. The assumption of control is an administrative procedure available to the superintendence that allows the superintendence to take any preventative or remedial actions that it considers necessary to allow a corporation to resolve critical legal, accounting, economic or other issues. As ordered by the superintendence pursuant to its control power, the granting of security over the assets of the Colombian branches, the transfer of their assets and transactions by the Colombian branches outside the ordinary course of business will each require the prior consent of the superintendence. The general control powers granted to the superintendence by the applicable law include: (i) promotion of plans or arrangement to improve the situation of a corporation that is subject to such control powers; (ii) authorization of amendments to the bylaws of a corporation that is subject to such control powers; (iii) authorization for the issuance and placement of shares of a corporation that is subject to such control powers; (iv) authorization of the granting of security over corporate assets, transfers of corporate assets and transactions outside the ordinary course of business; (v) removal of the administrators and internal auditors of a corporation that is subject to such control powers, when irregularities in their actions deem it necessary; and (vi) the commencement of plenary reorganization procedures, among others.

All operations of the company's subsidiaries, including the Colombian branches, are expected to continue as normal throughout this process. Importantly, the company expects that regular payments will be made to all of the Pacific subsidiaries' suppliers, trade partners and contractors across the jurisdictions in which Pacific operates in accordance with local regulations. Additionally, employees will continue to be paid throughout this process, without disruption. The company's bank indebtedness and indebtedness in respect of its senior unsecured notes will be restructured pursuant to the terms of the restructuring transaction.

The company is also pleased to announce that as of the date hereof, the restructuring transaction has received support from creditors holding approximately 68 per cent of the total principal amount of the debt held by the company's noteholders and lenders under the company's credit facilities. Subject to the terms and conditions of the restructuring support agreement entered into by the company, the supporting creditors and Catalyst, the supporting creditors have agreed to support and vote in favour of the restructuring transaction.

We seek Safe Harbor.

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