LONDON (Bloomberg) — Golden Ocean Group Ltd., billionaire John Fredriksen's commodity-shipping line, slid the most since 2004 in Oslo trading after saying its cash probably will run out next month. Frontline Ltd., his oil shipper, also fell. Both companies are based in Bermuda.

Golden Ocean declined 44 percent, reducing its market value to 609 million kroner ($88 million), compared with 12 billion kroner at the stock's October 2007 peak. Frontline fell three percent after saying oil-demand forecasts by "major agencies" may be optimistic.

Fourth-quarter profit tumbled more than 70 percent, both of the Bermuda-based companies said today, as the global slowdown cut demand for shipping. Golden Ocean said it's likely to "run out of cash liquidity to meet short-term obligations" next month because of a probable breach of financial covenants and so must raise equity and reorganise.

"What you're seeing today in the marketplace is fear of dilution" for current Golden Ocean investors, Petter Narvestad, an analyst at Fondsfinans AS in Oslo who advises selling both shipping lines' shares, said by telephone. "There's not the same discussion of the survivability of Frontline as there is with Golden Ocean."

Talks are under way on the reorganisation, which must be completed in March and also involves scaling back new ship orders and negotiating with creditors, said Golden Ocean. Fredriksen controls a 29 percent stake through Hemen Holding Ltd. Equity providers probably will seek "significant concessions" from owners of its unsecured debt, the shipper said.

"The assumption is that we find a solution with creditors," Herman Billung, Oslo-based chief executive officer of Golden Ocean's management unit, said by phone. "We are making money, so that gives us some comfort." Golden Ocean fell 1.7 kroner to 2.2 kroner in Oslo, leading declines in the 200-member Oslo All-Share Index. The stock has slid 51 percent this year after dropping 87 percent in 2008. Frontline lost 4.75 kroner to 153.25 kroner.

Fourth-quarter net income tumbled 72 percent at Golden Ocean, which scrapped its dividend and said the commodity-shipping market is suffering from "structural overcapacity".