Lone Pine Resources Inc. failed to make a US$10.1-million, semi-annual interest payment on its senior secured notes Thursday, setting the clock ticking on a possible default the could force the natural gas and light oil developer to seek protection from creditors, Stockhouse reported. The company, incorporated in Delaware but headquartered in Calgary, said failure by Lone Pine Resources Canada Ltd. to make the payment will result in default on the 10.375 per cent senior notes maturing in 2017 unless remedied within 30 days. Such a default would allow the trustee or holders of at least 25 per cent of the US$195 million in aggregate principal amount to declare the notes immediately due and payable with accrued interest. LPR Canada's failure to make the interest payment on the senior notes could also lead to a cross default under a credit agreement dated March 18, 2011, between Lone Pine, LPR Canada, JPMorgan Chase Bank, N.A., Toronto branch as administrative agent and other agents and lenders. Should Lone Pine fail to restructure or refinance by the deadline the company will ``likely not have adequate liquidity to fund its operations, meet its obligations . . . and continue as a going concern . . . '' In such an event would likely force Lone Pine to seek relief under the Canada's Companies' Creditors Arrangement Act and Chapter 11 or 15 of the U.S. Bankruptcy Code. Lone Pine is engaged in the exploration and development of natural gas and light oil in Canada, with principal reserves, producing properties and exploration prospects in Alberta, British Columbia, Quebec and the Northwest Territories. Read more.