Pacific Exploration & Production Corp said an Ontario court approved a $500 million debtor-in-possession financing facility for the Canadian company and its units, hours after it filed for creditor protection, Reuters reported yesterday. The Ontario Superior Court of Justice also approved a $134 million letter-of-credit facility and second-priority lien over assets under the facility, Pacific Exploration said. The company said earlier in the day that it had filed for protection from creditors under the Companies' Creditors Arrangement Act, an insolvency law in Canada that allows companies to restructure their finances and stay in business. Pacific Exploration said it also plans to file for protection under chapter 15 in the U.S. Pacific Exploration reached a deal last week with creditors, including Catalyst Capital Group Inc., to convert almost all of its debt to equity after it missed an interest payment due in March. Read more.
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