Pacific E&P Creditors Said to Gain Bigger Stake Under New BidBy
Proposal comes from consortium including Chico Pardo, O’Hara
Pacific’s independent committee said to make decision Monday
Creditors of Colombia-based oil producer Pacific Exploration & Production Corp. are being offered a larger stake in a restructured company under an eleventh-hour bid from a group that includes Mexican investor Fernando Chico Pardo, according to people who back the offer.
Under the proposal, affected creditors would receive 60 percent of the equity in a restructured Pacific, compared to 58.2 percent under a plan from Canada’s Catalyst Capital Group, said the people, who asked not to be identified because the details of the bid are private. Pacific said Friday that the latest restructuring proposal includes $575 million in debtor-in-possession financing, while the Catalyst bid includes $500 million in financing.
Creditors providing new funding stand to gain a 12.5 percent stake under both proposals, with Pacific’s independent committee of directors set to make a decision on the new bid on Monday, the people said.
Chico Pardo, 64, is chairman of airport operator Grupo Aeroportuario del Sureste SAB and owner of the Promecap fund. His involvement was disclosed Friday by Pacific, which said he was part of a group that includes O’Hara Administration Co. and Sergio Gutierrez of the DeAcero group.
Pacific failed to make bond interest payments in January and March, and it has struggled after a series of deals in recent years increased the company’s debt before oil prices plunged. It filed for protection from creditors in April in the Superior Court of Justice in Ontario.
Chico Pardo’s office didn’t immediately reply to requests for comment sent outside normal business hours, and Pacific declined to comment.
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