SINGAPORE - The board of commodities merchant Noble Group on Wednesday morning (March 28) said that under the terms of the restructuring support agreement (RSA), the company will not make the interest payment due March 29, 2018 for its US$1.1 billion unsecured revolving credit facility.
This is because the restructuring of all the group's unsecured indebtedness under agreement requires it to address the amounts due under the revolving credit facility along with all of Noble's other unsecured indebtedness.
It said that this decision was made based on advice from the group's legal and financial advisers, and that Noble had also consulted "extensively" with its group of creditors.
In an update on its financial restructuring, Noble said that ING Bank, as an existing trade finance provider and fronting bank, has received credit approval and has acceded to the RSA.
Noble has also received acceptances from consenting creditors representing 55 per cent of existing senior claims. Noble added that feedback from existing senior creditors to date has been "positive" and it expects creditors' participation in the RSA to "meaningfully increase" between now and the deadline for existing senior creditors to become backstop lenders.
The deadline for subscribing to participate in the new money debt has been extended to April 11, 2018.
Noble said: "ING's support as a fronting bank is instrumental for the availability of the new US$600 million three-year committed trade finance facility to support the operations of New Noble post restructuring.
"The group is also in active dialogue with third parties interested in extending additional trade finance and hedging facilities to Noble in the interim period prior to completion of the restructuring.
"These facilities are expected to facilitate the transition of operations to 'business as usual' and allow Noble to take advantage of the significant commercial opportunities that lie ahead."