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Interoil, operator of a number of Colombian oil blocks got approval from its shareholders to raise US$35M from existing and other investors. The equity is necessary to meet the requirements of bondholders to restructure and extend the company’s debt. The equity will be raised through a crash private placement that will close March 13, 2013. According to a company presentation, Interoil had US$97M of debt and US$10M in cash as of December 31, 2012 and it is using all of the proceeds from production in Peru and Colombia to pay for its debt. It is unable to invest in expanding production because of the debt load.

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