Pacific Exploration reaches restructuring deal with Catalyst Capital

Tue Apr 19, 2016 3:07am EDT
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April 19 (Reuters) - Oil and gas producer Pacific Exploration and Production Corp said it had entered into a restructuring agreement with private-equity fund Catalyst Capital Group Inc.

The deal will result in a net reduction of about $5 billion of its debt and about $253 million in annual interest costs, the company said.

Pacific Exploration said its creditors, including Catalyst, will provide $500 million of debtor-in-possession financing.

The company also said its operations, along with those of its subsidiaries, would not be affected by the restructuring.

Pacific, hurt by a prolonged slump in crude prices, said last week its board had agreed to negotiate a financial restructuring involving Catalyst Capital.

The company skipped an interest payment last month, making it the first Toronto-listed oil and gas company in the last one year to delay a payment.

On Monday, Pacific said the Toronto Stock Exchange was reviewing its eligibility for continued listing of its common shares. (Reporting by Parikshit Mishra in Bengaluru; Editing by Sunil Nair)