Norwegian Energy Company (Noreco) will ask for a deferral of bond payment installments and interest due in December as the company struggles with field shutdowns and impairments.
Noreco is seeking waivers for a $82.6 million bond installment payment and a $12.46 bond interest payment.
The company said Wednesday it is “unlikely” that it will be able to comply with its cash covenants towards the end of 2014 and through 2015 but it is exploring “all available alternatives.”
Noreco is in talks with its bondholder, Nordic Trustee, and bondholder advisers about its request for a waiver.
The company is also talking to SR-Bank, Noreco’s exploration loan facility representative, to request a waiver for its requirement to submit a 12 month funded business plan by December 1.
The deferrals will “allow the company necessary time to diligently pursue any solutions which can create or preserve more values for all stakeholders,” Noreco said.
Noreco had to take about $117 million in impairments during the third quarter as production at the E.ON operated Huntington field slumped and lower than expected reserves were found at the Oselvar field.
Huntington gas exports were stopped for the full month of October and 2015 production plans indicate a significant drop in output compared to previous estimates.
Last year, bondholders approved a $460 million refinancing plan as Noreco faced insolvency.
In October, chairman Morten Garman and fellow board member Erik Henriksen resigned.