• Alfa's proposal was competitive and created value: CFO
  • Pacific finalizing restructuring terms with Catalyst

Mexican conglomerate Alfa SAB is no longer competing to restructure Pacific Exploration & Production Corp. after its non-binding proposal was rejected by the beleaguered oil producer, according to Alfa’s Chief Financial Officer Ramon Leal.

Alfa’s proposal was competitive and created value for shareholders, Leal said on an earnings conference call Friday, without giving details because the terms cannot be discussed. Alfa, the second largest shareholder in Pacific with a roughly 19 percent stake, is seeking additional oil opportunities in Latin America and the U.S., he said.

Pacific is finalizing terms of a restructuring proposal with Canadian private equity firm Catalyst Capital Group Inc. and creditors, the company said in a statement Thursday. Under the proposal, spearheaded by co-chairmen Serafino Iacono and Miguel de la Campa, Catalyst is expected to provide about $500 million in funds secured against the company’s assets, according to people with knowledge of the matter.

Pacific failed to make bond interest payments in January and March and has struggled after a series of deals in recent years ballooned the company’s debt before oil prices plunged. The company received a number of restructuring proposals, according to a separate statement on Monday.

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