NEW YORK (TheStreet) -- Shares of Willbros Group Inc. are falling by 52.55% to $2.60 on very heavy volume in mid-morning trading on Wednesday, after the engineering company announced that it's expecting to miss its deadline for its annual financial report. Willbros also warned that the decline in its oil-and-gas business may lead to credit defaults that eventually may raise concerns regarding its ability to go on. "The company has determined that it is unable to file its Form 10-K for the year ended December 31, 2014 within the prescribed time period without unreasonable effort of expense," Willbros said in a statement issued on Tuesday afternoon. Willbros is in discussions with lenders in an attempt to amend or get waivers on its credit agreements as the company is expecting that it won't be in compliance with its Maximum Leverage Ratio and Minimum Interest Coverage Ratio. The company said that if it doesn't receive a definitive waiver or amendment, all debts under its credit agreements would become due in the next twelve months. "If the debt under the company's credit agreements becomes accelerated and the lenders demand repayment, it is expected that the Company will not have sufficient forecasted liquidity to retire its existing debt obligations, which raises substantial doubt on the company's ability to continue as a going concern," Willbros added. "The downturn in energy prices is clearly affecting our industry and we have re-evaluated our outlook for 2015. We believe the actions we have taken to reduce overall costs and reformulate our oil and gas segment should result in a leaner and more reliable business model. Our fourth quarter 2014 and first quarter 2015 results will be impacted by challenging conditions and the impact of the internal actions we are taking to reduce the size of our oil and gas segment," Willbros' CEO John McNabb II said in a statement.Additionally, Willbros Group was downgraded to "underperform" from "neutral" at DA Davidson as a result of delaying its 10-K earnings report. WG data by YCharts
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