In November, 2016, Catalyst completed a restructuring transaction with Pacific Exploration & Production (now called Frontera Energy), 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 renamed the company Frontera Energy and helped rebuild the business into a successful, low-cost oil & gas producer that continues to benefit the communities in which it operates.