Canacol Energy

Canacol Energy is negotiating with creditors over short-term debtor-in-possession (DIP) financing to advance a debt restructuring before liquidity runs out. The Colombian gas company is under time pressure due to falling production and rising losses. Its liabilities include $500 million in dollar bonds, a secured facility with Macquarie that is senior to the bonds, and a revolving credit line that matures in 2027. New estate financing could create conflicts among creditors because new lenders would likely receive priority claims; additionally, a production decline has already triggered an acceleration clause in the Macquarie loan. » More on de.investing.com

Moody’s cut Canacol’s Corporate Family Rating from Ca to C and also lowered the rating on senior unsecured notes to C; the outlook was changed from negative to stable. The downgrade follows the voluntary creditor protection proceedings under Canada’s CCAA; Moody’s intends to withdraw the ratings after a Chapter‑15 filing in the US. Moody’s highlights significant liquidity shortfalls and a non‑viable capital structure: as of September $36.5m cash on hand, a monthly Macquarie amortization of $6.25m, roughly $25m in payments due in November, bonds of $495m maturing in 2028 and a $200m revolver facility maturing in 2027. It also cites governance risks (ESG CIS‑5, G‑5) that could impair creditors’ position. » More on de.investing.com

Moody’s has downgraded Canacol Energy’s corporate rating from Caa1 to Ca and kept the outlook at negative. The action is justified by increased liquidity pressure: cash was about $36m at the end of Q3, while monthly repayments of $6.25m for a Macquarie loan and coupon payments of around $15m are due. Production volumes remain below expectations and capex stayed high ($107.6m in H1 2025). Moody’s continues to expect negative free cash flow and warns of the risk of a distressed exchange or further downgrades. An upgrade would be possible with sustainably higher production and reserves, increased EBITDA and improved liquidity. » More on de.investing.com