March 21, 2016 / 11:33 AM / 3 years ago

Canada's Pacific Exploration delays interest payment

(Reuters) - Canada’s Pacific Exploration & Production Corp PRE.TO said on Monday it chose not to make an interest payment due March 28, making it the first Toronto-listed oil and gas company in the last one year to delay a payment.

The company, due to make a $25.6 million interest payment next Monday, said it was working with debtholders to restructure debt. The company has a 30-day grace period.

Pacific Exploration warned on Friday that its auditor had raised significant doubt about its ability to continue as a going concern.

The company suffered a major setback in March last year, when Colombia’s state-run Ecopetrol ECO.CN said it would not extend its contract with Pacific Exploration to operate Colombia’s highest-producing Rubiales oilfield.

The decision on interest payment follows a Wall Street Journal report last week that Pacific Exploration was evaluating six buyout offers to avoid bankruptcy.

The company had a long-term debt of $5.38 billion and cash and cash-equivalents of $342.7 million in the year ended December.

Reporting by Amrutha Gayathri in Bengaluru; Editing by Maju Samuel

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