Pacific Exploration and Production reached an agreement with The Catalyst Group, banks and bondholders to restructure the debt and save themselves from bankruptcy.
Catalyst will retain 29.3% of the firm, bondholders with 58.2% and 12.5% creditors.
The bondholders who were not part of the negotiations have until April 29 to join the offer in exchange for compensation in shares.
This process is expected to end in the first quarter of 2016. The process will be overseen by a court in Canada.
What will happen to existing shareholders?
According to the statement of Pacific their current actions "will be canceled without consideration or be subject to a dilution so that, once the transaction is completed restructuring, the current holders of the
They possess only ordinary shares, together, a nominal amount of the shares of the reorganized company and voting rights associated with these shares "
After anucio the Colombia Stock Exchange suspended the negotiations of the shares.
What wins Pacific with restructuring?
The debts of the company are reduced by about US $ 5,000 million.
The bonds issued Pacific for about USD $ 5,300 million disappear and be replaced by little more than half of the shares of the new company.
You will also receive a special financing US500 million. Half of that money will be financed by Catalyst. The rest will be offered by creditors through new five-year bonds.
And who will manage the firm?
The restructuring transaction includes the appointment of a chief restructuring and CFO acceptable delegate for Catalyst, creditors who support the transaction and the independent committee official.
Upon completion of the transaction restructuring, the new board of the Company shall consist of seven members, three nominated by Catalyst, two independent selected jointly by Catalyst and creditors who support the transaction, one proposed by the Ad Hoc Committee and one proposed by bank lenders who support the transaction.
The new board will decide on the continuity of management of Pacific and the "incentive plan" for