Globe/wire say EIG prepares Pacific Exploration bid
Globe/wire say EIG prepares Pacific Exploration bid
2016-05-04 09:15 ET - In the News
The Globe and Mail reports in its Wednesday edition that EIG Global Energy Partners is preparing a fresh bid for Pacific Exploration & Production by a May 5 deadline, just ahead of a court hearing on the Colombia-based oil producer's restructuring. A Bloomberg dispatch to The Globe says Pacific last month selected a restructuring plan submitted by Catalyst Capital Group Inc. EIG will try to top Catalyst's bid. In addition, EIG and potentially others plan to urge a Canadian court to restart the selection process because of flaws in the way it was carried out. The hearing is set for May 10. Under the terms of the Catalyst deal, Catalyst and other creditors will provide $500-million in debtor-in-possession financing secured against Pacific's assets. However, Pacific's infrastructure assets cannot be pledged to anyone without the consent of the International Finance Corporation since the World Bank unit is a shareholder in the assets. So far, the IFC has not granted its consent. The Catalyst bid was spearheaded by Pacific's co-chairmen, Serafino Iacono and Miguel De La Campa. Catalyst could walk away from the deal if it fails to get IFC consent, or provide the financing without receiving collateral.