Pacific Exploration reaffirms commitment to creditor/Catalyst plan

By Caroline Salls

Pittsburgh, Aug. 23 – Pacific Exploration & Production Corp.’s board of directors reaffirmed that the comprehensive restructuring transaction with some holders of the company’s senior unsecured notes, some lenders under its credit facilities and The Catalyst Capital Group Inc. continues to be in the best interest of Pacific Exploration, according to a news release.

On Aug. 16, Pacific Exploration received a proposal from O’Hara Administration Co., SA, Fernando Chico Pardo of Promecap SA de CV, Sergio Gutierrez of DeAcerco group, Carlos Bremer Gutierrez of Value Grupo Financiero and other minority shareholders regarding an alternative restructuring transaction.

However, the board said Tuesday that the company should continue to implement the creditor/Catalyst restructuring transaction.

After reviewing the alternative proposal with its financial and legal advisers and receiving the input of supporting creditors, the board said an independent committee unanimously recommended that the board reaffirm the creditor/Catalyst transaction is in Pacific’s best interest, direct the company to continue to implement that transaction and reject the alternative proposal.

As previously reported, Pacific’s plan of compromise and arrangement to implement the creditor/Catalyst restructuring transaction has been approved by affected creditors.

Specifically, the company said the plan filed in its Companies’ Creditors Arrangement Act (Canada) case was approved by 98.4% in number of affected creditors who represent 97.2% in value of the eligible voting claims.

According to the release, Pacific intended to seek an order from the Ontario Superior Court of Justice sanctioning and approving the plan at a hearing scheduled for Aug. 23.

The company said it expects to implement the plan and complete the restructuring late in the third quarter or early in the fourth quarter.

Based in Toronto, Pacific Exploration is an oil and natural gas exploration company with operations in Latin America. The company filed for bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York on April 29 under Chapter 15 case number 16-11189.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.