Malka Oil bondholders accept proposal for early conversion

By Susanna Moon

Chicago, Feb. 27 - Malka Oil AB said bondholders voted at a meeting on Friday to convert $80 million of the company's bonds into 1,678,000,000 shares.

The conversion requires approval from an extra general meeting and that the coming rights issue of 140 million Swedish krona is fully subscribed.

The settlement will decrease the interest costs for the company by $6.6 million per year. After the rights issue and conversion of the bonds, the convertible bondholders will own about 42% of the shares in Malka Oil.

"Given a successfully completed rights issue and conversion of the convertible debt the company will have a considerably stronger balance sheet and a reduced interest burden of some 60 [million Swedish krona] per year," Fredrik Svinhufvud, managing director of Malka Oil, said in a press release.

Malka Oil is a Stocksund, Sweden-based oil and gas company.

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