Noble applying to Bermuda court to implement restructuring

If the firm wins court approval in a hearing, the restructuring is expected to take effect on Dec 18, 2018.
If the firm wins court approval in a hearing, the restructuring is expected to take effect on Dec 18, 2018.PHOTO: REUTERS

SINGAPORE - Embattled commodity trader Noble Group will apply to the Bermuda court in order to implement its restructuring, it said on Tuesday (Dec 11).

If it wins court approval in a hearing, expected to take place on Friday (Dec 14), the restructuring is expected to take effect on Dec 18.

The firm said in a Singapore Exchange filing on Tuesday that it "considers this course of action to be the only means available to it to implement the restructuring in the interests of all stakeholders, including existing shareholders of the company".

This is because existing shareholders will still be allocated a 20 per cent interest in New Noble, it said, despite Singapore regulators refusing to allow a transfer of Noble Group's listing status.

"Existing shareholders of the company would still receive the New Noble shares to be allocated to them, and therefore will continue to participate in any potential recovery upside," the statement noted.

If the firm is unable to complete its restructuring in line with this approach, it will be forced to enter a full liquidation process resulting in "no recovery for shareholders and holders of the company's perpetual capital securities, and also materially lesser recoveries for creditors", it said.

Noble has agreed to an extension from Dec 11 to Dec 31 to allow more time to complete the restructuring.

 
 
 

"The board remains of the strong view that the restructuring is in the best interests of all of the company's stakeholders, including its creditors and shareholders," said Noble.

It added that day-to-day operations will be unaffected.

Noble initially intended to relist on Nov 27, but this deadline was pushed back to no later than Dec 11 after Singapore authorities announced they were investigating the company.