The Board of Andes has agreed with the board of Interoil Exploration and Production ASA (IOX) to invest NOK 36.3 million (US$4.95 million) in IOX through a private placement subject to certain conditions, including the successful restructuring of IOX's NOK 310 million (US$42.2 million) corporate bond the (Bond) and the US$6.2 million debt due to Proseis AG (the "Proseis Debt"), and approval of the IOX shareholders and corporate bondholders.

The new shares to be issued to Andes will represent approximately 51% of the enlarged share capital of IOX, following the private placement and debt restructuring. The IOX board will be expanded to seven members of which four will be nominated by Andes, including the positions of Chairman, CEO and CFO.

Tags: Andes Energia