Bondholders have agreed to a proposed restructuring of Iona Energy after unveiling the plans earlier this year.
The next step following the approval will allow Nordic Trustee, which is acting as trustee to holders of the bonds, is to negotiate final documentation to implement the restructuring.
It is expected to be completed by the end of September this year.
A spokesman for the company said: “Iona Energy, a Canadian independent oil & gas company with assets in the UK North Sea is pleased to announce that bondholders have approved the proposed restructuring of Iona.”
The move comes a month after the company agreed to the sale of a non-core asset – its 2.5% stake in the Esmond Transportation System (ETS) – to French energy giant Engie for £1.3million.
Iona’s interest in ETS, which terminates onshore at Bacton in Norfolk, includes an associated share of the Eagles pipeline in the southern North Sea.