Court File No.: CV-16-11363-00CL SUPERIOR COURT OF JUSTICE COMMERCIAL LIST

Court File No.: CV-16-11363-00CL
ONTARIO
SUPERIOR COURT OF JUSTICE
COMMERCIAL LIST
IN THE MATTER OF THE COMPANIES' CREDITORS ARRANGEMENT ACT,
R.S.C. 1985, c. C-36, AS AMENDED
AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF
PACIFIC EXPLORATION & PRODUCTION CORPORATION, PACIFIC E&P
HOLDINGS CORP., META PETROLEUM CORP., PACIFIC STRATUS
INTERNATIONAL ENERGY LTO., PACIFIC STRATUS ENERGY COLOMBIA
CORP., PACIFIC STRATUS ENERGY S.A., PACIFIC OFF SHORE PERU
S.R.L., PACIFIC RUBIALES GUATEMALA S.A., PACIFIC GUATEMALA
ENERGY CORP., PRE-PSIE COQPERATIEF U.A., PETROMINERALES
COLOMBIA CORP. AND GRUPO C&C ENERGIA (BARBADOS) LTO.
Applicants
SUPPLEMENTAL MOTION RECORD
(Returnable May 26, 2016)
May 24, 2016
NORTON ROSE FULBRIGHT CANADA LLP
Royal Bank Plaza, South Tower, Suite 3800
200 Bay Street, P.O. Box 84
Toronto, Ontario M5J 2Z4 CANADA
Tony Reyes LSUC #28218V
Tel: 416.216.4825
tony. reyes@nortonroseful bright. com
Virginie Gauthier LSUC #41 0970
Tel: 416.216.4853
[email protected]
Alexander Schmitt LSUC #63860F
Tel: 416.216.2419
[email protected]
Fax: 416.216.3930
Lawyers for the Applicants
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Court File No.: CV-16-11363-00CL
ONTARIO
SUPERIOR COURT OF JUSTICE
COMMERCIAL LIST
IN THE MATTER OF THE COMPANIES' CREDITORS ARRANGEMENT ACT,
R.S.C. 1985, c. C-36, AS AMENDED
AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF
PACIFIC EXPLORATION & PRODUCTION CORPORATION, PACIFIC E&P
HOLDINGS CORP., META PETROLEUM CORP., PACIFIC STRATUS
INTERNATIONAL ENERGY LTD., PACIFIC STRATUS ENERGY COLOMBIA
CORP., PACIFIC STRATUS ENERGY S.A., PACIFIC OFF SHORE PERU
S.R.L., PACIFIC RUBIALES GUATEMALA S.A., PACIFIC GUATEMALA
ENERGY CORP., PRE-PSIE COOPERATIEF U.A., PETROMINERALES
COLOMBIA CORP. AND GRUPO C&C ENERGIA (BARBADOS) LTO.
Applicants
Document:
Tab:
........... ...................................................
1
A
Page No.:
''
Supplemental AffidaVit of Peter Volk sworn May 24, 2016
1
A copy of the decision of the Superintendencia de Sociedades de
Colombia dated May 18, 2016, together with a translation of the
same
4
...............................................
2
Draft Order
CAN_DMS: \102681949\1
11
TAB 1
Court File No.: CV-16-11363-00CL
ONTARIO
SUPERIOR COURT OF JUSTICE
COMMERCIAL LIST
IN THE MATTER OF THE COMPANIES' CREDITORS ARRANGEMENT ACT,
R.S.C. 1985, c. C-36, AS AMENDED
AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF
PACIFIC EXPLORATION & PRODUCTION CORPORATION, PACIFIC E&P
HOLDINGS CORP., META PETROLEUM CORP., PACIFIC STRATUS
INTERNATIONAL ENERGY LTO., PACIFIC STRATUS ENERGY COLOMBIA
CORP., PACIFIC STRATUS ENERGY S.A., PACIFIC OFF SHORE PERU S.R.L.,
PACIFIC RUBIALES GUATEMALA S.A., PACIFIC GUATEMALA ENERGY
CORP., PRE-PSIE COOPERATIEF U.A., PETROMINERALES COLOMBIA
CORP. AND GRUPO C&C ENERGIA (BARBADOS) LTD.
Applicants
SUPPLEMENTAL AFFIDAVIT OF PETER VOLK
(Sworn May 24, 2016)
I, Peter Volk, of the city of Toronto, in the Province of Ontario, MAKE OATH AND SAY:
1
I am the General Counsel of Pacific Exploration & Production Corporation ("Pacific"),
which is the direct or indirect parent of over 100 subsidiaries and Colombian branches
(collectively, the "Pacific Group"), including the other Applicants. I have held that position since
February, 2008. As such, I have personal knowledge of the matters to which I hereinafter
depose, except where otherwise stated, and where so stated I believe that information to be
true.
2
I swear this Affidavit in supplement to a previous Affidavit I swore on May 20, 2016 in the
within proceedings (my "First Affidavit") and further to a motion brought by the Applicants for
an Order that would, among other things, authorize one of the Applicants, Meta Petroleum Corp.
("Meta") to cash collateralize a letter of credit in the amount of US$2.32 million with respect to
CAN_DMS: \102685597\1
~------------------------------------
Meta's obligations to the Agencia Nacional de Hidrocarburos (the "ANH"), the Colombian
national hydrocarbons agency.
I.
CASH COLLATERALIZATION OF THE LLANOS-55 LETTER OF CREDIT
3
The Pacific Group holds interests in its hydrocarbon properties in Colombia through
exploration and production contracts ("E&P Contracts"), and to secure the performance of its
obligations pursuant to such E&P Contracts, the Pacific Group has caused numerous letters of
credit to be issued in favour of third parties, including governmental entities in Colombia.
4
The letter of credit facility that was previously approved by this Court under the Initial
Order (the "LIC Facility") is intended to deal with the issuance, renewal and extension of letters
of credit that will expire during these proceedings. It is currently contemplated to become
effective on or about June 2, 2016 (the "Effective Date").
5
One of the Applicants, Meta, is party to an E&P contract with the ANH in relation to the
"Llanos-55" block in Colombia (the "Llanos-55 Contract"). Pursuant to that contract, Meta has
caused the ANH to be provided with a letter of credit in the amount of US$2,320,000, which is
scheduled to expire and must be renewed, prior to the Effective Date (the "Llanos-55 L/C").
6
Given the current circumstances of the Pacific Group, Meta believes that .it will not be
able to renew the Llanos-55 LIC, unless it provides the issuing bank with security in the form of
cash collateral in the amount of US$2,320,000 (the "Cash Collateral").
7
The Llanos-55 Contract is a valuable asset of the Pacific Group and it is in the best
interests of the Pacific Group and its stakeholders that Meta be authorized to provide the Cash
Collateral and keep the contract in good standing.
CAN_DMS: \102685597\1
II.
TRANSLATION OF SUPERINTENDENCIA'S DECISION WITH RESPECT TO
EIG
8
In my First Affidavit, I reported that EIG Management Holdings LLC had applied to the
Superintendencia de Sociedades de Colombia (the "Superintendencia"), the regulatory and
judicial authority that oversees insolvencies in Colombia, for an adjournment of the recognition
proceedings before it in respect of certain of the Applicants. I also reported that on May 18,
2016, the Superintendencia rejected that postponement request. At the time I swore my First
Affidavit however, a certified copy of the Superintendencia's decision made on May 18, 2016
with respect to that rejection was not yet available. I now have a copy of that translation, and
attach a copy of the same, together with a copy of the Superintendencia's decision in Spanish,
as Exhibit "A" hereto .
SWORN BEFORE ME at the City of Toronto,
in the Province of Ontario, this 20th day of
May, 2016.
CAN_DMS: \102685597\1
TABA
--
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This is Exhibit "A" referred to in the
Affidavit of Peter Volk
sworn before me, this 24th day
of May, 2016
~Aff·d·t
omm1ss1oner or a 1ng
CAN_DMS: \65405557\1
1 av1 s
llllllllllllllllllllllllllllllllllllllllllllllllllll
AI contestar cite el No,
2016-01-277906
Tlpo: Salida
Fecha: 17/05/2016 07:11:15 PM
Tramlte: 16021 - PETICIONES VARIAS (NO DEL PROMOTOR 0 Ll
Socledad: 830126302 - META PETROLEUM COR
Exp. 39978
Remltente: 400 - DELEGATURA PARA PROCEDIMIENTOS DE INS
Destine: 4151 - ARCHIVO APOYO JUDICIAL
Folios: 2
Anexos: NO
Tlpo Documental: AUTO
Consecutive: 400-007779
SUI'£RtNTENOliiNCIA
iJE $0Cl!l0AtJE$
AUTO
SUPERINTENDENCIA DE SOCIEDADES
Sujeto del proceso
Pacific Exploration and Production Corp.
Meta Petroleum Corp. Sucursal Colombia (Nit. 830.126.302)
Pacific Stratus Energy Colombia Corp. Sucursal Colombia (Nit. 800.128.549)
Petrominerales Colombia Corp. Sucursal Colombia (Nit. 830.029.881)
Representante extranjero
PriceWaterHuseCoopers Inc.
As unto
Tramite de reconocimiento de proceso extranjero
Expediente
39978
I.
ANTECEDENTES
1. Mediante memorial2016-01-247484 de 2 de mayo de 2016, el apoderado especial de
Pacific Exploration & Production Corp, Meta Petroleum Corp. Sucursal Colombia,
Pacific Stratus Energy Colombia Corp. Sucursal Colombia y Petrominerales Colombia
Corp. Sucursal Colombia, junto con el apoderado de PriceWaterhouseCoopers Inc.,
quien actua como monitor y representante extranjero designado por Ia Corte Superior
de Justicia de Ontario, solicitaron el reconocimiento del proceso extranjero iniciado
con arreglo a Ia Ley de Arreglos de acreedores de Compaf\ias (Companies Creditors
Arrangement Act- "CCAA'), ante Ia Corte Superior de Justicia de Ontario, Canada.
Fundamentaron su pretension en lo dispuesto en el Capitulo Ill del Titulo Ill de Ia Ley
1116 de 2006 y el Decreta 1749 de 2011.
2. Mediante mensaje de datos, el Superintendente de Sociedades (e) remitio por
competencia una comunicacion que le fue enviada por el Presidente y Director
Ejecutivo de EIG Management Company, LLC y Ia Directora General y Directora
Ejecutiva de Harbour Energy Ltda.
3. En el memorial, los firmantes pusieron de presente Ia propuesta de financiacion
realizada al grupo Pacific, y pidieron que sea considerada por este Despacho antes
de que se profiera cualquier decision de reconocimiento o procedimiento respecto del
proceso de reorganizacion canadiense y/o de Ia propuesta de Catalyst.
II. CONSIDERACIONES DEL DESPACHO
1. Siempre que se trate de procesos de insolvencia, esta Superintendencia, de
conformidad con lo dispuesto en el incise 3 del articulo 116 de Ia Constitucion
Politica, actua en ejercicio de funciones jurisdiccionales, razon por Ia cual sus
atribuciones y las de los sujetos procesales estan enmarcadas dentro de tales
facultades, con las limitaciones y alcances que ha definido Ia propia ley con plena
aval de Ia jurisprudencia.
2. En efecto, las decisiones del juez del concurso se profieren con estricta sujecion a los
terminos y etapas jurisdiccionales y preclusivas establecidos en el regimen concursal,
En Ia Superintendencia de Sociedades trabajamos con
integridad por un Pais sin corrupci6n.
Entidad No. 1 en el lndice de Transparencia de las Entidades Publicas, ITEP.
www.supersocledades.gov.co
I
[email protected] Colombia
2/2
AUTO
2016-01-277906
META PETROLEUM CORP SUCURSAL COLOMBIA
SUPER!NiENDIH'ICIA
PI> $0Clt':PAPI'$$
que es prevalente, transitorio y excepcional 1 , y en lo no regulado expresamente, se
aplican las normas del C6digo General del Proceso (articulo 124, Ley 1116 de 2006).
3. Desde esta 6ptica, y analizada Ia solicitud formulada, su tramite se estima
improcedente a Ia luz de las facultades jurisdiccionales otorgadas a esta
Superintendencia por Ia Constituci6n y por Ia Ley 1116 de 2006, en atenci6n .al
contexte procesal promovido, esto es, el reconocimiento de un proceso extranjero.
4. Por lo demas, este Despacho advierte que, en virtud de lo previsto en el articulo 251
del C6digo General del Proceso, para que los documentos procedentes del extranjero
que esten en idioma distinto del castellano puedan ser valorados en el proceso,
deben venir acompanados de traducci6n oficial, condici6n que no acredita el
memorial en estudio.
En merito de lo expuesto, el Superintendente Delegado para Procedimientos de
lnsolvencia,
RESUELVE
Rechazar por improcedente Ia solicitud contenida en memorial 2016-01-276317, suscrito
por el Presidente y Director Ejecutivo de EIG Management Company, LLC y por Ia
Directora General y Directora Ejecutiva de Harbour Energy Ltda.
Notifiquese,
~~-p:Z~
C~-r ~ v v-u.-1>r~
NICOLAS POLANiA TELLO
Superintendente Delegado para Procedimientos de lnsolvencia
RD: ACTUACIONES
2016-01-276317
1
Auto 400-014040 de 21 de octubre de 2015
En Ia Superintendencia de Sociedades trabajamos con
integridad por un Pais sin corrupci6n.
Entidad No. 1 en el fndice de Transparencia de las Entidades Publicas. ITEP.
www.supersocledades.gov,co
I
[email protected] Colombia
MERRILLCORPORATION
1345 Avenue of the Americas
17th Floor
New York, NY 10105
212.620.5600
merrilkorp.c:om
State of New York
)
County ofNew York
)
)
ss:
Certificate of Accuracy
This is to certify that the attached:
AutoEIG
originally written in the Spanish language is, to the best of our knowledge and belief, a true,
accurate and complete translation into the English language.
Dated: May 23, 2016
~~
Nathan H
y
Project Manager, Legal Translations
Merrill Brink International
aay
Sworn to and signed before
23rd
day of
me, this
2016
Notary Public
ROBERT J. MALZA .
Notaty Public, State of New York
No. 01 MA5057911
Qualified In l<lngs County
Commission ExplresApril1, 2018
MBrdlltl' an Equal Employrn(lnt Opport~m!ty
and Affirmattve Action Employer
11111111111 II lllllllllllllllllllllllllllllllllllllll
Make reference to No. 2016-01-277906 in response
Type: Release
Date: 05/17/2016 07:11:15 PM
Procedure: 16201- VARIOUS PETITIONS (NOT OF PROMOTER OR Ll
COMPANY: 830126302- META PETROLEUM COR File 39978
Remitter: 400- DELEGATE OFFICE FOR INS PROCEDURES
Destination: 4151- JUDICIAL SUPPORT ARCHIVE
Folios: 2
Annexes: NO
Document Type: ORDER
Sequential: 400-007779
[Logo: SUPERINTENDENCE OF
COMPANIES]
ORDER
SUPERINTENDENCE OF COMPANIES
Parties to the procedure
Pacific Exploration and Production Corp.
Meta Petroleum Corp. Colombia Branch (Nit. 830.126.302)
Pacific Stratus Energy Colombia Corp. Colombia Branch (Nit. 800.128.549)
Petrominerales Colombia Corp. Colombia Branch (Nit. 830.029.881)
Foreign Representative
PriceWaterHouseCoopers Inc.
Matter
Proceedings for recognition of a foreign procedure
File
39978
I. BACKGROUND
1. Through brief 2016-01-247484, dated May 2, 2016, the special attorney for Pacific Exploration & Production
Corp, Meta Petroleum Corp. Colombia Branch, Pacific Stratus Energy Colombia Corp. Colombia Branch and
Petrominerales Colombia Corp. Colombia Branch, together with the attorney for PriceWaterhouseCoopers Inc.,
acting as monitor and foreign representative designated by the Ontario Superior Court of Justice, applied for
recognition of a foreign procedure initiated under the Companies' Creditors Arrangement Act- "CCAA", before
the Ontario Superior Court of Justice, Canada. They based their application on the provisions of Chapter Ill,
Title Ill, of Law 1116 of 2006 and Decree 1749 of 2011.
2. By data messaging, the Superintendent of Companies (e) delivered by reason of jurisdiction a
communication sent by the President and Executive Director of EIG Management Company, LLC and the
General Director and Executive Director of Harbour Energy Ltda.
3. In the briefs, the signors presented the financing proposal made to the Pacific group, and requested that it be
considered by this Office before issuing any decision regarding recognition or proceedings with regards to the
Canadian reorganization procedure and/or the Catalyst proposal.
II. CONSIDERATIONS BY THE OFFICE
1. Whenever the matter is related to insolvency procedures, this Superintendence, in accordance with the
provisions of paragraph 3 of article 116 of the Political Constitution, exercises jurisdictional functions,
consequently, its powers and those of the parties to the procedure are framed within such powers, with the
limitations and scope defined by the law with the support of case law.
2. In fact, decisions by the insolvency judge are issued in strict compliance of the preclusive jurisdictional terms
and stages established in the insolvency regime,
2/2
ORDER
2016-01-277906
META PETROLEUM CORP COLOMBIA BRANCH
[Logo: SUPERINTENDENCE OF
COMPANIES]
1
which is prevalent, transitory and exceptional , and aspects not expressly regulated, are governed by the rules
of the General Process Code (Article 124, Law 1116 of 2006).
3. From this standpoint, and having analyzed the formulated petition, its process is deemed inadmissible in light
of the jurisdictional powers granted to this Superintendence by the Constitution and Law 1116 of 2006, by virtue
of the promoted procedural context, namely, the recognition of a foreign procedure.
4. On other aspects, this Office warns that, by virtue of article 251 of the General Process Code, in order for
foreign documents, written in a language different from Spanish, to be analyzed in the procedure, they must be
accompanied by an official translation, a condition not evidenced in the reviewed brief.
In consideration to the foregoing, the Delegated Superintendent for Insolvency Proceedings,
RESOLVES
To reject the request included in brief 2016-01-276317, signed by the President and Executive Director of EIG
Management Company, LLC and the General Director and Executive Director of Harbour Energy Ltda, on the
grounds of inadmissibility.
Let it be notified,
NICOLAS POLANiA TELLO
Delegate Superintendent for Insolvency Proceedings
RD: PROCEEDINGS
2016-01-276317
IN THE MATTER OF THE COMPANIES' CREDITORS ARRANGEMENT ACT, R.S.C. 1985, c. C-36, AS
AMENDED
Court File No.: CV-16-11363-00CL
AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION, PACIFIC E&P HOLDINGS CORP., META PETROLEUM CORP., PACIFIC
STRATUS INTERNATIONAL ENERGY LTD., PACIFIC STRATUS ENERGY COLOMBIA CORP., PACIFIC
STRATUS ENERGY S.A., PACIFIC OFF SHORE PERU S.R.L., PACIFIC RUBIALES GUATEMALA S.A.,
PACIFIC GUATEMALA ENERGY CORP., PRE-PSIE COOPERATIEF U.A., PETROMINERALES COLOMBIA
CORP. AND GRUPO C&C ENERGIA (BARBADOS) LTO.
Aoolicants
ONTARIO
SUPERIOR COURT OF JUSTICE
COMMERCIAL LIST
Proceeding commenced at Toronto
SUPPLEMENTAL AFFIDAVIT OF PETERVOLK
(Sworn May 24, 2016)
NORTON ROSE FULBRIGHT CANADA LLP
Royal Bank Plaza, South Tower, Suite 3800
200 Bay Street, P.O. Box 84
Toronto, Ontario M5J 2Z4 CANADA
Tony Reyes LSUC #28218V
Tel: 416.216.4825
[email protected]
Virginie Gauthier LSUC #41 0970
Tel: 416.216.4853
[email protected]
Alexander Schmitt LSUC #63860F
Tel: 416.216.2419
[email protected]
Lawyers for the Applicants
CAN_DMS: \102685597\1
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TAB2
Court File No.: CV-16-11363-00CL
ONTARIO
SUPERIOR COURT OF JUSTICE
COMMERCIAL LIST
THURSDAY, THE 261h
THE HONOURABLE
JUSTICE NEWBOULD
DAY OF MAY, 2016
IN THE MATTER OF THE COMPANIES' CREDITORS ARRANGEMENT ACT,
R.S.C. 1985, c. C-36, AS AMENDED
AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF
PACIFIC EXPLORATION & PRODUCTION CORPORATION, PACIFIC E&P
HOLDINGS CORP., META PETROLEUM CORP., PACIFIC STRATUS
INTERNATIONAL ENERGY LTO., PACIFIC STRATUS ENERGY COLOMBIA
CORP., PACIFIC STRATUS ENERGY S.A., PACIFIC OFF SHORE PERU S.R.L.,
PACIFIC RUBIALES GUATEMALA S.A., PACIFIC GUATEMALA ENERGY
CORP., PRE-PSIE COOPERATIEF U.A., PETROMINERALES COLOMBIA
CORP. AND GRUPO C&C ENERGIA (BARBADOS) LTD.
Applicants
ORDER
THIS MOTION, made by the Applicants for an Order, inter alia:
(a)
extending the stay of proceedings granted by this Court pursuant to the
Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36 as amended (the
"CCAA") to and including August 26, 2016;
(b)
approving the engagement of Blackhill Partners, LLC ("Biackhill"), as Chief
Restructuring Officer (the "CRO") of the Applicants, the CRO's engagement of
Acquest Advisors, LLC ("Acquest"), and GMP Securities Emerging Markets
Corp. ("GMP") as financial advisor to The Catalyst Capital Group Inc.;
(c)
amending the initial order of this Court issued April 27, 2016 in respect of the
Applicants (the "Initial Order") such that (i) Blackhill, (ii) Deloitte Restructuring
Inc. ("Deloitte"), (iii) Acquest, and (iii) GMP will each have the benefit of the
- 1-
CAN_DMS: \102587539\4
Administration Charge (as defined in the Initial Order) created to secure
professional fees;
(d)
authorizing each Applicant to grant, from time to time as required, unsecured
guarantees of the obligations of any other Applicant under any oil and gasrelated exploration & production contract, joint operating agreement, licence, or
other similar arrangement with the Agencia Nacional de Hidrocarburos (the
"ANH"), Ecopetrol S.A. or any other governmental agency or body in Colombia,
to the extent required by such governmental agency or body in order to keep
such contract, agreement or licence in good standing;
(e)
· amending the Initial Order to include certain provisions relating to International
Finance Corporation and certain of its affiliates; and
(f)
authorizing Meta Petroleum Corp. to cash collateralize a letter of credit in the
amount of US$2.32 million with respect to obligations to the ANH
was heard this day at 330 University Avenue, Toronto, Ontario.
ON READING the Affidavit of Peter Volk sworn May 20, 2016 (the "Volk Affidavit"), the
Supplementary Affidavit of Peter Volk sworn May 24, 2016 and the Second Report (the
"Second Report") of PricewaterhouseCoopers Inc. (the "Monitor") and on hearing the
submissions of counsel for the Applicants, the Monitor, the ad hoc committee acting for certain
holders of unsecured senior notes issued by Pacific Exploration and Production Corporation's
("Pacific"), Bank of America N.A. and HSBC Bank USA, N.A. as administrative agents with
respect to certain unsecured credit facilities of Pacific, The Catalyst Capital Group Inc., the
independent committee of the board of directors of Pacific, and those other parties present or
- 2CAN_DMS: \102587539\4
listed on the Counsel Slip, no one else appearing although duly served as appears from the
affidavits of service, filed,
Definitions
1
THIS COURT ORDERS that the capitalized terms used herein and not otherwise
defined shall have the meaning given to them in the Initial Order;
Service
2
THIS COURT ORDERS that the time for service of the Notice of Motion, the Applicants'
Motion Records herein, and the Second Report is hereby abridged and validated so that this
Motion is properly returnable today and hereby dispenses with further service thereof.
Stay Extension
3
THIS COURT ORDERS that the Stay Period, as defined in the Initial Order, be and is
hereby extended up to and including August 26, 2016.
Approval of Engagements and Amendments to Initial Order
4
THIS COURT ORDERS that each of (a) Deloitte, and (b) GMP shall also be added to
the list of Assistants (as defined in the Initial Order) named in Schedule A to the Initial Order and
that each shall be treated as an "Assistant" for all purposes under the Initial Order, including,
without limitation, in respect of the Administration Charge.
Approval of Engagement Letters
5
THIS COURT ORDERS that the engagement letter between GMP and The Catalyst
Capital Group Inc. dated May 19, 2016 (attached as Exhibit "B" to the Volk Affidavit) are each
hereby ratified and confirmed and the Applicants are authorized to perform any obligations they
- 3CAN_DMS: \102587539\4
may have thereunder, and that any claims of GMP under such engagement letters shall be
treated as unaffected in any Plan or proposal under the BIA filed by the Applicants.
Approval of Chief Restructuring Officer Engagement
6
THIS COURT ORDERS that:
(a)
the engagement letter dated May 12, 2016 pursuant to which the Applicants have
engaged Blackhill to act as their CRO, a copy of which is attached as Exhibit "A"
to the Volk Affidavit (the "CRO Engagement Letter"), and the appointment of the
CRO pursuant to the terms thereof is hereby approved, including, without
limitation, the CRO's engagement of Acquest pursuant to the provisions of the
CRO Engagement Letter and the payment of the fees and expenses
contemplated thereby;
(b)
none of the Blackhill or Acquest shall be or be deemed to be a director or
employee of any of the Applicants;
(c)
Blackhill and Acquest shall be added to the list of Assistants named in Schedule
A to the Initial Order and shall be treated as "Assistants" for all purposes under
the Initial Order, including, without limitation, in respect of the Administration
Charge;
(d)
none of Blackhill or Acquest shall, as a result of the performance of their
respective obligations and Services (as defined in the CRO Engagement Letter)
in accordance with the terms of the CRO Engagement Letter, be deemed to be in
Possession of any of the Property that might be environmentally contaminated,
might be a pollutant or a contaminant, or might cause or contribute to a spill,
discharge, release or deposit of a substance contrary to any Eiwironmental
- 4CAN_ OMS: \102587539\4
~--~--~------------------------------
Legislation; however, if Blackhill or Acquest is nevertheless later found to be in
Possession of any Property, then Blackhill or Acquest, as the case may be, shall
be deemed to be a person who has been lawfully appointed to take, or has
lawfully taken, possession or control of such Property for the purposes of section
14.06(1.1)(c) of the BIA and shall be entitled to the benefits and protections in
relation to the Applicants and such Property as provided by section 14.06(2) of
the BIA to a "trustee" in relation to an insolvent person and its property;
(e)
None of Blackhill or Acquest or any of their officers, directors, employees or
agents shall have any liability with respect to any losses, claims, damages or
liabilities, of any nature of kind, to any Person from and after the date of this
Order except to the extent such losses, claims, damages or liabilities result from
the gross negligence or wilful misconduct on the part of Blackhill or Acquest;
(f)
no action or other proceeding shall be commenced directly, or by way of
counterclaim, third party claim or otherwise, against or in respect of Blackhill and
Acquest, and all rights and remedies of any Person against or in respect of them
are hereby stayed and suspended, except with the written consent of the Monitor
or with leave of this Court on notice to the Applicants, the Monitor and the CRO.
Notice of any such motion seeking leave of this Court shall be served upon the
Applicants, the Monitor and the CRO at least seven (7) days prior to the return
date of any such motion for leave; and
(g)
the obligations of the Applicants to Blackhill and Acquest pursuant to the CRO
Engagement Letter shall be treated as unaffected and may not be compromised
in any Plan or proposal filed under the BIA in respect of the Applicants.
- 5CAN_DMS: \102587539\4
Approval of Granting of Regulatory Guarantees
7
THIS COURT ORDERS that, subject to the prior approval of by the Monitor, each of the
Applicants is hereby authorized to grant, from time to time as required, an unsecured guarantee
of the obligations of any other Applicant under any oil and gas-related exploration & production
contract, joint operating agreement, licence or other similar arrangement with the Agencia
Nacional de Hidrocarburos, Ecopetrol S.A. or any other similar such governmental agency or
body in Colombia, to the extent required by such governmental agency or body in order to keep
such contract, agreement, licence or arrangement in good standing.
International Financial Corporation
8
THIS COURT ORDERS that the following two paragraphs be inserted after paragraph
59 of the Initial Order:
"59A. THIS COURT ORDERS that, notwithstanding any provision of this Order or the
DIP Financing Documents, there shall be no Charges on, and the DIP Financing
Documents shall not include or provide for any security on, the shares or assets of any
of Pacific Midstream Holding Corp., Pacific Midstream Ltd., Pacinfra Holding Ltd., Pacific
Infrastructure Ventures Inc. or any of their direct or indirect subsidiaries or entities in
which they have an interest.
598.
THIS
COURT ORDERS
that notwithstanding
that
International
Finance
Corporation, GIF Co-Investment I, LP, IFC Global Infrastructure Fund LP, and IFC
African, Latin American and Caribbean Fund, LP (collectively "IFC") do not object to the
provision of the unsecured guarantees by Pacific Midstream Holding Corp. and Pacinfra
Holding Ltd. in respect of the DIP Notes, the Exit Notes (as defined in the DIP Exit/Term
Sheet) and the L/C Facility, in each case, as part of the DIP Financing Documents (as
-6CAN_DMS: \102587539\4
-----------------------------------:----------
approved by this Court in this Order), and a hedging facility for up to 60% of the
Applicants' oil and gas production (the "Hedging Facility") (as permitted under the DIP
Financing Documents, all as approved by this Court in this Order), all rights of IFC with
respect to any guarantees sought to be provided in the future by Pacific Midstream
Holding Corp. and/or Pacinfra Holding Ltd. (other than in respect of the DIP Notes, the
Exit Notes, the L/C Facility and the Hedging Facility) be and are hereby expressly
reserved."
Issuance of Cash Collateral for Letter of Credit
9
THIS COURT ORDERS that Meta Petroleum Corp. is hereby authorized and entitled to
cash collateralize a letter of credit in the amount US$2,320,000 if such letter of credit is required
by the ANH with respect to Meta Petroleum Corp.'s exploration and production contract with the
ANH with respect to the "Llanos-55" block in Colombia.
- 7CAN_DMS: \102587539\4
IN THE MATTER OF THE COMPANIES' CREDITORS ARRANGEMENT ACT, R.S.C. 1985,
c. C-36, AS AMENDED
Court File No.: CV-16-11363-00CL
AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF PACIFIC
EXPLORATION & PRODUCTION CORPORATION, PACIFIC E&P HOLDINGS CORP., META
PETROLEUM CORP., PACIFIC STRATUS INTERNATIONAL ENERGY LTD., PACIFIC STRATUS
ENERGY COLOMBIA CORP., PACIFIC STRATUS ENERGY S.A., PACIFIC OFF SHORE PERU
S.R.L., PACIFIC RUBIALES GUATEMALA S.A., PACIFIC GUATEMALA ENERGY CORP., PREPSIE COOPERATIEF U.A., PETROMINERALES COLOMBIA CORP. AND GRUPO C&C ENERGIA
(BARBADOS) LTD.
Applicants
ONTARIO
SUPERIOR COURT OF JUSTICE
COMMERCIAL LIST
Proceeding commenced at Toronto
ORDER
(Returnable May 26, 2016)
NORTON ROSE FULBRIGHT CANADA LLP
Royal Bank Plaza, South Tower, Suite 3800
200 Bay Street, P.O. Box 84
Toronto, Ontario M5J 2Z4 CANADA
Tony Reyes LSUC #28218V
Tel: 416.216.4825
[email protected]
Virginie Gauthier LSUC #41 0970
Tel: 416.216.4853
[email protected]
Alexander Schmitt LSUC #63860F
Tel: 416.216.2419
[email protected]
Lawyers for the Applicants
CAN_DMS: \102587539\4
IN THE MATTER OF THE COMPANIES' CREDITORS ARRANGEMENT ACT, R.S.C. 1985,
c. C-36, AS AMENDED
Court File No.: CV-16-11363-00CL
AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF PACIFIC
EXPLORATION & PRODUCTION CORPORATION, PACIFIC E&P HOLDINGS CORP., META
PETROLEUM CORP., PACIFIC STRATUS INTERNATIONAL ENERGY LTD., PACIFIC
STRATUS ENERGY COLOMBIA CORP., PACIFIC STRATUS ENERGY S.A., PACIFIC OFF
SHORE PERU S.R.L., PACIFIC RUBIALES GUATEMALA S.A., PACIFIC GUATEMALA
ENERGY CORP., PRE-PSIE COOPERATIEF U.A., PETROMINERALES COLOMBIA CORP.
AND GRUPO C&C ENERGIA (BARBADOS) LTD.
Applicants
ONTARIO
SUPERIOR COURT OF JUSTICE
COMMERCIAL LIST
Proceeding commenced at Toronto
SUPPLEMENTAL MOTION RECORD
(Returnable May 26, 2016)
NORTON ROSE FULBRIGHT CANADA LLP
Royal Bank Plaza, South Tower, Suite 3800
200 Bay Street, P.O. Box 84
Toronto, Ontario M5J 2Z4 CANADA
Tony Reyes LSUC #28218V
Tel: 416.216.4825
[email protected]
Virginie Gauthier LSUC #41 097D
Tel: 416.216.4853
[email protected]
Alexander Schmitt LSUC #63860F
Tel: 416.216.2419
[email protected]
Lawyers for the Applicants
CAN_DMS: \102681949\1