Judges have lifted the restraining order granted to Citibank NA's London branch against paper manufacturer Norske Skog.

The US District Court (Southern District of New York) ruled in favour of the paper maker, denying the plaintiff's motion for a preliminary injunction because Citibank had "failed to demonstrate it will suffer irreparable harm in the absence of an injunction".

Norske Skog says it will review the details of the ruling with its legal advisors and consider any effects on the ongoing exchange offer. Currently, more than 40 per cent of the aggregate principal amount of the 2016 Notes and more than 75 per cent of the aggregate principal amount of the 2017 Notes have been tendered in the Exchange Offers.

The company announced on February 10 that it disagreed with auditor Ernst & Young AS and Norske Skog about the applicable principles and industry outlook relating to the calculation of asset values. The board of Norske Skogindustrier ASA is about to finalise the process, and says an announcement will be made in the next week.