Connacher Oil & Gas Ltd.’s bid to restructure out of court in Canada was rejected as it struggles to cope with falling energy prices.

Connacher, an oils-sands developer, was seeking an Alberta court’s approval to swap C$1 billion ($796 million) of bonds for equity and to issue $35 million of convertible notes.

Credit Suisse Group AG, an agent to unidentified lenders, sued to disrupt the deal in New York state court, saying the Canadian court couldn’t rule on the issue because Connacher defaulted on a $128 million loan, which is a more senior form of debt.

The Court of Queen’s Bench of Alberta held a final meeting this week to consider Connacher’s plan. The restructuring proposal was denied in a Calgary court Thursday, according to the company and two lawyers representing Credit Suisse, Kevin Zych and Anthony Friend.

The ruling wasn’t immediately available in court records.

Connacher said in a statement that it’s assessing its options and continues to work to address its liquidity and capital structure. Alternatives could include the sale of all or a portion of its assets, Connacher said, warning there is no guarantee of a deal or the terms and timing of any transaction.

The Calgary-based company started a review to fix its balance sheet in December and the following month hired financial advisers to consider a sale of some or all of its assets.

Without a new source of capital, Connacher would have a tough time staying in business if it was forced to repay the $128 million loan, Moody’s Investors Service Inc. has said.

Last week, retired U.S. bankruptcy judge Allan L. Gropper said as an expert providing his opinion on the legal issues for Credit Suisse that the bank “was within its rights under New York law when it accelerated the debt.”

Connacher’s 8.75 percent notes due 2018 last traded at 5.4 cents on the dollar, while its first-lien term loan was trading just below 89 cents, according to the latest data compiled by Bloomberg.

The company’s shares fell 20 percent Thursday to 3 Canadian cents in Toronto.

U.S. crude prices are trading at less than half their June high, closing Friday at $49.14 a barrel.

The New York case is Credit Suisse AG v. Connacher Oil & Gas Ltd., 650806/2015, New York State Supreme Court, New York County (Manhattan).