Norway's Noreco Proposes Restructuring

Norwegian oil firm Noreco proposed a restructuring of the firm, including the full conversion of its bond debt, as low oil prices and persistent production problems at its key assets are threatening its ability to remain a going concern, it said.

"The Board's current assessment is that full conversion of bond debt is necessary to maintain going concern and to create a sustainable solution where values can be best preserved and underlying values realised for all financial stakeholders," it said in a statement on Monday.

"Noreco's financial situation and outlook has continued to deteriorate due to the significant and continued drop in oil prices, increases in projected operating costs and accelerated retention of cash to cover future abandonment costs," it said.

Reporting by Balazs Koranyi