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Bond Market News
Canacol Secures DIP Financing from Bondholders
December 12, 2025
Canacol Energy, the distressed Canadian company and the largest gas producer in Colombia, has received a lifeline from bondholders as part of its restructuring. The company has agreed on a $67m debtor-in-possession (DIP) financing with holders of its 2028s to fund operations during its restructuring. DIP financing is emergency funding provided after a company enters creditor protection, and it ranks ahead of all existing debt, making it safer for lenders. The package includes a $45m delayed-draw term loan (money that can be drawn in stages as needed) maturing 30 Jun 2026, and $22m in letters of credit. The firm filed for protection on November 18 amid liquidity stress and falling production with ~$500m in bonds outstanding and bank facilities running to 2027. Some analysts have said that Canacol’s best shot at recovery is from an acquisition – the company is said to be in talks with Colombian state-owned oil company Ecopetrol. However, no details of the talk have been made public yet.
It’s $500mn 5.75% 2028s are currently trading at 23.75 cents on the dollar, yielding over 65%.
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