Pacific Exploration & Production Considering Six Buyout Offers

Latin America’s largest independent oil producer, Pacific Exploration & Production Corp., is evaluating six buyout offers to avoid bankruptcy, according to people familiar with the negotiations, The Wall Street Journal reported. The final offers, which include a management buyout and up to $500 million in loans, are due Wednesday, with the board expected to make a decision by the end of the week, the four people said. Share prices of the Bogotá, Colombia-based firm, which is also listed in Toronto, fell more than 95% in the past two years as lower oil revenues exposed poorly-timed asset purchases. Pacific spokesman Tom Becker declined to elaborate on the details of the specific offers, saying that the firm doesn’t comment on rumors. He said the company is “currently working with all stakeholders and advisers to make the company’s capital structure more suitable to market conditions.” Read more. (Subscription required.)
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