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Editor in chief: Angelo Scorza
17/12/18 14:36

A New Noble commodity trading company can rise

Ailing Noble seeks for court-ordered administration in Bermuda to complete its whole restructuring process

Embattled commodity trading company Noble applied to the Bermudian court for a hearing for a court-ordered administration to complete the whole restructuring process and get out as New Noble.

A filing with Singapore Exchange defined such an approach as intended to preserve the underlying business and operations for the benefit of its existing shareholders who in the end would still have overall 20% shares allocated to them under the current restructuring plan; this despite Singapore regulators have not permitted for Noble's listing status to be transferred to New Noble yet.

Noble’s BoD said that such action is the only mean available to implement restructuring in the interests of all the company’s stakeholders; otherwise it will have to enter a full liquidation process and, as a consequence, there will be no recovery of any assets for shareholders and holders of the company’s perpetual capital securities, while also materially lesser recoveries for creditors.

On 25 July 2018, Noble Group Limited announced that a lawsuit was filed in the District Court of South Jakarta by PT Alhasanie, a subsidiary of PT Atlas Resources Tbk, against PT Pinang Coal Indonesia and PT McMahon Mining Services seeking damages of US$20 million from PT PCI.

The lawsuit concerned the alleged breach of a Technical Services and Management Consulting Agreement dated 30 June 2015.

PT Alhasanie then withdrew the lawsuit against PT PCI on 29 October.

In early November a UK court revealed peers Vitol and COFCO also as Nobles creditors.

In September the troubled Group was saved from insolvency after shareholders approved a $3.5 billion debt restructuring. Noble’s market value has been wiped out from $6 billion in February 2015 when Iceberg Research launched the first of its damaging reports on the company.

Once Asia’s biggest commodity trader, Noble Group manages a portfolio of global supply chains covering a range of industrial and energy products and facilitates marketing, processing, financing and transportation of essential raw materials sourcing bulk commodities from low cost regions South America, South Africa, Australia and Indonesia, to supply high growth demand markets in Asia and the Middle East.

Angelo Scorza

TAG : Trading