Troubled Norwegian independent Noreco suspended trading of its shares and bonds Friday as it struggles to make $95 million in bond and interest payments due in December.
The company’s stock has dropped to near record lows after it announced last month it would most likely be unable to make the payments.
Publicly owned Noreco sent a summons to bond holders on December 4 requesting approval for a $82.6 million bond installment payment waiver and $12.46 million bond interest waiver.
“Pending discussions concerning amendments to the summons, Norwegian Energy Company ASA has requested Oslo Børs for a temporary suspension of the company’s shares and bonds,” Noreco said.
The company has faced mounting financial strain after the offshore Huntington field was shutdown in October, forcing Noreco to take about $110 million in write downs.
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.
Noreco holds a 20 percent interest in Huntington.
The company said the impairments are expected to have a “significant negative impact on cash flow in 2015 and beyond.”
Last year, bondholders approved a $460 million refinancing plan as Noreco faced insolvency following the shutdown of fields in the UK and Denmark.
In October, chairman Morten Garman and fellow board member Erik Henriksen resigned.