Pacific Exploration and Production restructures US$5.5bn of debt

We advised Pacific Exploration and Production Corporation in connection with its successful restructuring of approximately US$5.5 billion of debt and other liabilities. The recapitalization of the Company was implemented through a court-supervised process, with coordinated proceedings in Canada, Colombia and the United States, with the main proceeding taking place in Ontario under the Companies' Creditors Arrangement Act. The transaction was the largest restructuring in Colombian history.

The approved plan was comprised principally of the extinguishment of approximately US$5.2 billion of financial indebtedness and nearly US$20 million in other commercial liabilities and contingencies for a 58% equity stake in the company, a capital infusion by plan sponsor, The Catalyst Capital Group Inc., new financing, a letter of credit facility, debtor-in-possession financing and the sale of certain oil and gas assets and interests.