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April 19 (Reuters) - Pacific Exploration and Production Corp said it reached a deal with debtholders, including Catalyst Capital Group Inc, to convert almost all of its debt to equity as it looks to fight a prolonged slump in oil prices.
The move comes after Pacific Exploration said last week that its board had agreed to negotiate a financial restructuring, involving the private equity fund, after the oil and gas company missed an interest payment.
About $5.3 billion of the company’s debt will be exchanged for 58.2 percent of its common shares under the restructuring deal, Pacific Exploration said.
Catalyst has agreed to provide half of the $500 million in debtor-in-possession financing and will own a 29.3 percent stake in the restructured company, Pacific Exploration said.
Pacific Exploration said its operations, along with those of its subsidiaries, would not be affected by the restructuring.
The company suffered a major setback in March last year, after Colombia’s state-run Ecopetrol refused to extend its contract to operate the country’s highest-producing Rubiales oilfield.
Pacific Exploration said on Monday that the Toronto Stock Exchange was reviewing its eligibility for continued listing of its common shares. (Reporting by Parikshit Mishra and Amrutha Gayathri in Bengaluru; Editing by Sunil Nair and Anil D’Silva)