Interoil bondholders and shareholders approve debt restructuring

By Caroline Salls

Pittsburgh, Jan. 20 – Interoil Exploration and Production ASA’s bondholders and shareholders approved its debt restructuring, according to company news releases.

As previously reported, the restructuring includes issuance of a total of 395 million new shares.

Following the restructuring, Andres Energia plc will be the largest shareholder, holding 51% of the company’s shares.

In addition, Interoil will convert NOK 7.15 million of the NOK 310 million bond into 65 million shares, around 10% of the company’s equity.

The remaining outstanding amount will be converted into a new bond loan denominated in dollars.

Under the restructuring terms, the new bond will pay interest at 6% in cash or 8% in kind. In-kind payments will only be allowed for the first two years.

The bond will mature in five years and will be callable immediately at a price of 105.

After the restructuring, the new bond will have a principal amount of $32 million. Of this, $30 million will be issued to existing bondholders and the remaining $2 million will be held by the former shareholders of Proseis AG, to be issued in exchange for debt Interoil owes to Proseis.

Interoil said the shareholders also elected new directors to its board.

Specifically, the board is comprised of Ricardo Nicolas Mallo Huergo, Alejandro Oscar Jotayan, Matthieu Milandri, Jose Francisco Chalela, Dolores Rivas, Maria Rosa Siles Moreno and Mimi Berdal.

Interoil is an Oslo-based exploration and production company.

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