Davis Polk advised the administrative agent under a $1 billion prepetition unsecured revolving credit facility, in connection with the successful cross-border restructuring of Pacific Exploration & Production Corp. (together with its affiliates that were debtors in the proceedings referenced below, “Pacific”) in Canada, Colombia and the United States. On November 2, 2016, Pacific implemented its plan of reorganization and emerged as a going concern from creditor protection under the Companies’ Creditors Arrangement Act of Canada (the “CCAA”).

Under the terms of the CCAA plan, all $5.3 billion of Pacific’s prepetition financial debt was equitized, Pacific’s new equity was approved for trading on the Toronto Stock Exchange, and a new board of directors was selected by prepetition financial creditors and a plan sponsor. A substantial majority of Pacific’s prepetition financial creditors supported the CCAA plan, which received approval of the CCAA court on August 23, and which was given effect in the United States and Colombia through ancillary insolvency proceedings under chapter 15 of the U.S. Bankruptcy Code and Colombian Ley 1116.

Upon exit from the CCAA case, Pacific’s $500 million debtor-in-possession note facility was converted into a combination of equity and a $250 million exit note facility, and Pacific’s debtor-in-possession letter of credit facility, negotiated by Davis Polk, was converted into a $112 million secured exit letter of credit facility.

Pacific Exploration & Production Corp. is a publicly held Canadian company and a leading explorer and producer of crude oil and natural gas in Colombia, Peru, and elsewhere in Central and South America.

The Davis Polk insolvency and restructuring team includes partners Damian S. Schaible and Eli J. Vonnegut and associates Angela M. Libby, Benjamin M. Schak, Chris Van Buren and Joseph M. Luizzi. The credit team includes partner Monica Holland and associates Sanders Witkow and Julian Azran. All members of the Davis Polk team are based in the New York office. 

Copy link to share post