Noble restructuring takes effect; $1.1b debt financing for new entity

New Noble acquires substantially all of the assets of Noble Group

Commodity firm Noble Group's restructuring took effect yesterday with US$800 million (S$1.1 billion) in new money debt having been made available to New Noble, the restructured entity.

New Noble, whose planned listing on the Singapore bourse was derailed by an ongoing probe into possibly improper accounting, has acquired substantially all of the assets of Noble Group.

The shares in New Noble are now held 70 per cent by its senior creditor special purpose vehicle (SPV), 20 per cent by Noble Group shareholders, and 10 per cent by the management SPV.

The Noble Group board also announced the resignation of independent non-executive directors Wayne Porritt and Tim Isaacs, who joined earlier this year to help guide the firm through the restructuring.

It added that the recent investigation and the decision of the Singapore Exchange not to list the shares of New Noble meant it has had to reconsider the most appropriate composition of the board.

"This process will take some further time to complete. Meanwhile, Paul Brough has agreed to become the first chairman of New Noble until a suitable successor has been identified," it said in a statement.

"The board of New Noble will also include new directors appointed by Goldilocks and the creditors, management representatives and certain independent non-executive directors from the (Noble Group) board to provide continuity."

 

The firm also stated that it has sent a detailed response to questions raised by the Accounting and Corporate Regulatory Authority last month.

Noble added: "The company continues to hold the strong view that all of its financial statements have been prepared in accordance with all relevant accounting standards."

IN LINE WITH STANDARDS

The company continues to hold the strong view that all of its financial statements have been prepared in accordance with all relevant accounting standards.

NOBLE GROUP, in a statement.

Noble Group, which no longer has any material assets, said US$800 million in debt financing has been made available to New Noble.

New Noble said it will provide shareholders with an update regarding the settlement options in relation to their shares in New Noble as soon as possible. "New Noble desires this to be as efficient as possible for all its stakeholders," it said.

A version of this article appeared in the print edition of The Straits Times on December 21, 2018, with the headline 'Noble restructuring takes effect; $1.1b debt financing for new entity'. Print Edition | Subscribe