We are advising an ad hoc group of noteholders in connection with the restructuring

Davis Polk is advising an ad hoc group of noteholders in connection with the in-court restructuring of Canacol Energy Ltd.

On November 18, 2025, Canacol Energy and certain of its subsidiaries sought protections in the Court of King’s Bench of Alberta under the Companies’ Creditors Arrangement Act of Canada (CCAA). Subsequently, Canacol filed for chapter 15 recognition of the CCAA proceeding in the Southern District of New York, which was granted on December 11, 2025. The CCAA proceeding was also recognized as the foreign main proceeding by the Superintendency of Companies of Colombia on December 18, 2025.

Members of the ad hoc group have committed to provide debtor-in-possession (DIP) financing in the form of a $45 million delayed draw new money term loan, with capacity for the company to obtain additional commitments to issue up to $22 million in additional letters of credit. The DIP financing was approved by the CCAA Court on December 11, 2025, and the order was recognized by the U.S. Bankruptcy Court for the Southern District of New York on December 18, 2025. Canacol is also seeking enforcement of the DIP by the Colombian Superintendence of Corporations. Proceeds of the DIP financing will fund Canacol’s ongoing operations and restructuring efforts.

Canacol is a natural gas exploration and production company with operations focused in Colombia. Canacol’s shares are traded on the Toronto Stock Exchange under the symbol “CNE,” the OTCQX in the United States under the symbol “CNNEF” and the Bolsa de Valores de Colombia under the symbol “CNEC.”

The Davis Polk restructuring team includes partners Timothy Graulich and Angela M. Libby, counsel Aryeh Ethan Falk and Joanna McDonald and associates Joseph William Bretschneider, Lara Luo, Tony Sun and Mckenzie K. Whalen. All members of the Davis Polk team are based in the New York office.

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