The Norway-headquartered group has been adversely impacted by a sharp decline in the value of the Norwegian krone, combined with an operating environment during 2015 that the firm described as “exceedingly more challenging than envisaged”.

It wants to persuade holders of its senior loan notes that mature next year to switch to new unsecured notes that mature in 2019, and holders of the senior notes that mature in 2017 into a mix of new unsecured notes that won’t mature until 2026 together with perpetual notes.

The firm also wants to amend the terms of other existing notes that mature between 2016 and 2023, in order to de-leverage and improve its equity position.

Chief executive Sven Ombudstvedt said: “If the transaction is successfully completed, we can avoid a comprehensive balance sheet restructuring in the foreseeable future. We believe that the successful completion of the transaction will protect value for all our stakeholders.”

He said its growth plans for new products beyond paper, into areas such as bio fuels, were “on track” and would contribute to the company’s profitability next year.

Its product range under the ‘Nor’ brand includes newsprint, improved newsprint, SC paper for gravure and web offset, and LWC grades for magazines and catalogues.

The group has an annual production capacity of 2.8m tonnes across its seven wholly owned paper mills, of which four are in Europe: two in Norway, one in France and one in Austria. The remaining mills are in Australasia.

In its most recent financial results, for Q3 2015, the business posted sales of NOK2.8bn (£211m), and a loss of NOK742m.

It had net interest bearing debt of NOK8.4bn, the equivalent of almost $1bn.

Norske Skog said demand for newsprint in Europe decreased by 7% in August, with magazine paper demand down 4%.

Its share price fell by 9% to NOK2.10 on the news.