The oil giant Pacific Exploration & Production Corp. recently put the finishing touches on the largest restructuring of debt in Colombian history. Pacific’s lawyers at Proskauer Rose say that the deal was unusually complex, since there were no precedents in Colombia for a deal of this size and complexity.

The restructuring plan, which went into effect on Nov. 2, allowed Pacific to extinguish more than $5.3 billion of debt. In exchange for wiping out the claims, the Toronto-based private equity firm Catalyst Capital Group Inc. and other creditors will receive the majority stake in the reorganized company. Pacific’s creditors will also provide millions in financing secured against the company’s assets. The company also agreed to sell certain oil and gas assets and interests in Brazil, Colombia, Peru and Guatemala.

More than 20 firms in North and South America and Europe involved in the months of negotiations between the company’s bondholders, bank lenders and commercial creditors. Proskauer Rose was Pacific’s lead counsel in the U.S. and provided advice on all aspects of the restructuring and drafted and negotiated all key documentation. The Proskauer team of 37 attorneys included partners Carlos Martinez in New York, David Fenwick in São Paulo and Andrew Bettwy in New York, who handled the corporate and finance aspects of the matter. Martin Bienenstock, Timothy Karcher and retired partner Judy Liu, all based in New York, led on bankruptcy and restructuring matters.

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