- Pacific Exploration & Production (PEGFF) says it has reached an agreement with Catalyst Capital on a restructuring plan that is expected to reduce Pacific’s debt by ~$5B.
- Under the terms of the deal, Catalyst and other creditors will provide $500M in debtor-in-possession financing secured against Pacific’s assets, with $250M provided by funding creditors to be converted into five-year convertible notes, while Catalyst’s $250M will be converted or exchanged for 16.8% of the shares in the reorganized company.
- Pacific’s $4.1B in unsecured debt, $1.2B in obligations on its credit facility and other unsecured claims by creditors will be wiped out and exchanged for a 58.2% stake in the reorganized company.