Firm Agrees to Convert $488,000 of Maxoil Debt

Maxoil Inc., a small energy company based in Glendale, said Lease Development Co. agreed to convert $488,000 of Maxoil debt it holds into 1.22 million common shares of Maxoil.

The conversion is part of Maxoil’s effort to cut its debt and otherwise bolster its balance sheet. As part of that plan, Maxoil is also soliciting holders of its preferred stock to convert their shares to common stock, and to date 85% of the preferred shares have been converted, Maxoil said.

After both conversions, Maxoil would have roughly 20 million common shares outstanding, of which Lease Development, a Lake Arrowhead concern, would own 1.2 million. Holders of the preferred stock would own about 2.6 million shares.

Maxoil, with annual revenue of about $1 million, operates oil wells in Bakersfield and Texas.