Pacific Exploration & Production Corp.’s plan to wipe some $5 billion in debt from its books cleared a final hurdle on Wednesday, putting the company on track to emerge from bankruptcy within two weeks, the Wall Street Journal reported today. Following a hearing in Manhattan, Bankruptcy Judge James Garrity Jr. said that he would sign off on a global restructuring plan, which has already won approval in courts in both Canada and Colombia. Pacific, an oil and natural gas producer, is based in Canada but operates primarily in Colombia, where it is the largest independent oil and natural gas company, court papers showed. Much of the company’s mountain of debt, however, is held in the U.S. Judge Garrity, who is overseeing Pacific’s U.S. bankruptcy proceeding, had already agreed to formally recognize the Canadian court as Pacific’s primary restructuring venue, but he had asked lawyers for the company to return to his courtroom on Wednesday to present the final version of the plan before he would agree to discharge any debt. The restructuring plan, which the company says is one of the largest and most complicated restructurings ever attempted in Latin America, erases $5.3 billion, court papers showed. Pacific, which is continuing normal operations during the bankruptcy, said the strategy not only aims to cut debt but will also save it $253 million in annual interest expenses. Read more. (Subscription required.)
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