RE:RE:Pacific Exploration & Production Considered Six Buyouts !!! https://www.wsj.com/articles/pacific-exploration-production-considering-six-buyout-offers-1458169354
By
CARACAS, Venezuela—Latin America’s largest independent oil producer,
Pacific Exploration & Production Corp., is evaluating six buyout offers to avoid bankruptcy, according to people familiar with the negotiations.
The final offers, which include a management buyout and up to $500 million in loans, are due Wednesday, with the board expected to make a decision by the end of the week, the four people said. Share prices of the Bogot, Colombia-based firm, which is also listed in Toronto, fell more than 95% in the past two years as lower oil revenues exposed poorly-timed asset purchases.
Pacific spokesman Tom Becker declined to elaborate on the details of the specific offers, saying that the firm doesn’t comment on rumors. He said the company is “currently working with all stakeholders and advisers to make the company’s capital structure more suitable to market conditions.”
The offers are being compiled by the company’s financial advisers Lazard and will be analyzed by an independent committee appointed by the board, the people said. The committee will present its recommendation to directors by Friday, the people said. A Lazard spokesman didn’t return a request for comment.
The most advanced offer would convert Pacific Exploration’s debt into equity, thus giving the bondholders a majority stake in the company in return for reducing the payment load, the people said. Under this plan, the company’s management would raise $500 million from banks and private equity, while keeping 10% of the company’s shares, the people said.