The oil giant Pacific Exploration & Production Corp. recently put the finishing touches on the largest restructuring of debt in Colombian history. Pacific’s lawyers at Proskauer Rose say that the deal was unusually complex, since there were no precedents in Colombia for a deal of this size and complexity.
The restructuring plan, which went into effect on Nov. 2, allowed Pacific to extinguish more than $5.3 billion of debt. In exchange for wiping out the claims, the Toronto-based private equity firm Catalyst Capital Group Inc. and other creditors will receive the majority stake in the reorganized company. Pacific’s creditors will also provide millions in financing secured against the company’s assets. The company also agreed to sell certain oil and gas assets and interests in Brazil, Colombia, Peru and Guatemala.
