May 9 (Reuters) - EIG Global Energy Partners said it has submitted a binding proposal to provide $250 million debtor-in-possession (DIP)financing to Pacific Exploration & Production Corp and sponsor the company’s restructuring.
Compared with the DIP financing proposed by Catalyst Capital last month, EIG’s proposed financing had a lower equity conversion, EIG said on Monday.
Oil producer Pacific Exploration said last month it had reached a deal with debtholders, including Catalyst Capital to convert almost all of its debt to equity.
An Ontario court in April approved a $500 million debtor-in-possession financing facility for the Canadian company and its units.
Catalyst had agreed to provide $250 million in DIP financing to own a 29.3 percent stake in the restructured company.
EIG said it would also give Pacific Exploration an additional $75 million to improve the reorganized company's balance sheet and fund its break-up fee for the deal with Catalyst. (bit.ly/23C4bjv) (Reporting by Manish Parashar in Bengaluru; Editing by Shounak Dasgupta)