Pacific Exploration suspended by TSX, pending review
Pacific Exploration & Production Corp (C:PRE)
Shares Issued 316,094,858
Last Close 4/18/2016 $0.64
Tuesday April 19 2016 - News Release
Mr. Frederick Kozak reports
PACIFIC ANNOUNCES SUSPENSION AND PENDING DELISTING OF COMMON SHARES
Pacific Exploration & Production Corp. has received notice from the Toronto Stock Exchange that the TSX has suspended the company's common shares immediately while the TSX reviews the company's continued eligibility for listing under the TSX's expedited review process. Trading in the company's common shares has also been suspended on La Bolsa de Valores de Colombia (the Bogota stock exchange).
The suspension and possible delisting are based on the company's announcement on April 19, 2016, that with the support of: (i) an ad hoc committee of holders of the company's senior unsecured notes, and, (ii) certain of the company's lenders under its credit facilities, it has entered into an agreement with The Catalyst Capital Group Inc. in respect of a comprehensive financial restructuring that will significantly reduce debt, improve liquidity and best position the company to navigate the current oil price environment. Given the significant impairments to the company's bank indebtedness and indebtedness in respect of its senior unsecured notes (and the treatment of such indebtedness pursuant to the restructuring transaction), the company's existing outstanding common shares will be: (i) cancelled for no consideration, or (ii) subject to extensive dilution such that, following completion of the restructuring transaction, existing holders of common shares will hold in the aggregate only a nominal amount of the reorganized company's equity and associated voting power. Please see the company's news release in respect of the restructuring transaction dated as of the date hereof.
A hearing to decide whether to delist the company's common shares from the TSX is currently scheduled for April 25, 2016. The company does not intend to make any submissions at the hearing, and, therefore, it is expected that the company's common shares will be delisted from the TSX on or about May 25, 2016.
The company is in the process of determining the impact of the restructuring transaction on its common shares listed for trading on the BVC.
We seek Safe Harbor.