LONDON (From news reports) -- For the second time this week, the board of Norske Skog has extended the deadline for agreeing a consensual restructuring of the pulp and paper producer but this time the subsidiary holding its major assets has not backed the move.

The parent company said it hoped to reach a deal by Monday, October 9 and then launch a revised proposal. This is the third time negotiations on this particular proposal have been extended.

Last week a committee of senior secured noteholders, with two-thirds of those 290m notes at face value, agreed to the company's original plan. But a rival committee of unsecured noteholders said they would not back that plan.

All classes of stakeholders, including group equity holders, are needed to approve the deal for it to go ahead.

The senior secureds have already demanded their 290m defaulted notes be repaid in full but have yet to try and enforce this threat by taking control of the Norwegian company's seven paper mills.

These are held in the subsidiary of the group, whose board has declined to back this extension. It is unclear if this means that the directors of this subsidiary have changed in the last two days since the group last updated the market.

"The board ... will use the next few days to conclude on discussions with the various stakeholder groups to try to achieve sufficient support for a consensual recapitalisation solution for the Norske Skog group, and if so, launch a revised consent solicitation proposal supported by major bondholder groups," the parent company said.

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