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Bond Market News
Canacol Energy Seeks DIP Financing
December 8, 2025
Canacol Energy, is seeking debtor-in-possession (DIP) financing to secure short-term liquidity as it restructures its debt and nears a cash crunch, as per sources. The DIP loan, which would likely gain priority over existing creditors, risks creating tension among existing stakeholders, sources noted. Apart from its $500mn 5.75% dollar bond due in 2028, Canacol has an outstanding secured credit facility with Macquarie, and an RCF with a bank syndicate that expires in 2027. Canacol’s lost a key pipeline contract in 2023, which led to ongoing production declines and triggered an acceleration clause under the Macquarie loan. Despite prior assurances about meeting obligations, Canacol failed to secure external financing amid what analysts describe as poor credibility and communication issues. Canacol recently entered creditor protection in Canada and has subsequently filed for Chapter 15 in the US. Many creditors now view a potential sale as the best recovery path. Ecopetrol has confirmed Canacol’s interest in being acquired, and analysts note that despite its challenges, Canacol still holds strategic value given Colombia’s structural natural gas shortages.
Its 5.75% 2028s continues to trade at distressed levels of 19-20 cents on the dollar.
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