In November, 2016, Catalyst completed a restructuring transaction with Pacific Exploration & Production, a Canadian based natural gas and crude oil E&P Company. Pacific was struggling financially with a high debt burden and needed to operationally reduce costs and integrate multiple prior acquisitions. Pacific had a diversified portfolio of assets with operations in Colombia, Peru, Brazil, Guyana, Guatemala and Belize. In partnership with Pacific’s bondholders, banks, government authorities and suppliers, Catalyst lead a restructuring process to equitize Pacific’s total debt outstanding totaling US$5.4 Billion. Catalyst’s restructuring plan provided $500 million in Debtor-In-Possession financing (“DIP”) of which US$250 million were converted into equity and US$250 million were converted into long term debt financing.
Catalyst, with Pacific E&P, implemented a strategy that would reduce organizational scale, complexity and cost while maximizing operating and cost efficiencies to ensure the Company achieved sustainable production and growth. Under guidance from Catalyst, Pacific announced a new Board comprised of highly skilled independent directors and relisted the company’s shares on the Toronto Stock Exchange under the symbol “PEN”.
Pacific emerged from its recapitalization with a renewed strategic focus, positive cash flow, a strong balance sheet, significantly reduced payables and a Board of Directors with the unique skills and experience needed to guide management and drive value creation for all stakeholders. Catalyst helped rebuild Pacific into a successful, low-cost oil & gas producer that continues to benefit the communities in which it operates.