Interoil Exploration & Production ASA : Interoil Exploration & Production ASA
: Eksportconsult threatens lawsuit
IOX received a notification on 19 March 2013 that Eksportconsult is
considering filing a lawsuit against IOX.
The factual basis for the lawsuit appears to be that the board of IOX chose to
complete the USD 35000 000 equity issue through a private placement instead
of entering into negotiations for the sale of Interoil Colombia and Interoil
Peru based on indicative offers that IOX had received on 12 March 2013 from
two parties acting in concert. Eksportconsult alleges that a sale would have
given a better financial result for the original shareholders than the
completion of the private placement.
The offer to acquire Interoil Peru was made by a Swiss company, with
undisclosed shareholders. The company was represented by the current General
Manager of Interoil Peru, Jaime Mur Campoverde and the offer was presented to
IOX by Mårten Rød.
The indicative offers received were not firm and subject to several
conditions, including due diligence. None of the offers would enable IOX to
meet its USD 10000000 payment obligation under the bond loan that was due on
the 14 March 2013. Pursuing these offers would therefore require IOX to
complete an equity issue of USD 10000000, in order to avoid a default on the
bond loan and insolvency.
None of the largest shareholders of IOX, including Eksportconsult, was willing
to subscribe in such an equity issue and this was therefore not a viable
option for IOX.
Eksportconsult and the bidders were informed of what would be required with
respect to price, firmness of the offers, deal certainty and funding of the
short term bond payment, in order for IOX to be able to cancel the private
placement. The bidders were not willing to meet these criteria. In the opinion
of the board of IOX, they had no other alternative then to complete the USD
35000000 equity issue if a default on the bond was to be avoided.
IOX strongly rejects that there is any basis for the claims notified by
* * *
For more information please contact:
Chair of the Board
Mob: +47908 66 856
Thomas J. Fjell
Mob: +47 958 15 300
InterOil Exploration & Production ASA is a Norwegian based exploration and
production company - listed on the Oslo Stock Exchange - with focus on
Latin-America. The company is operator of several production and exploration
assets in Peru and Colombia. InterOil currently employs approximately 280
people and is headquartered in Oslo.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Interoil Exploration & Production ASA via Thomson Reuters ONE
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