HONG KONG/SINGAPORE (Reuters) – Troubled commodity dealer Noble Group (NOBG.SI) on Thursday mentioned it had obtained a waiver from collectors to increase covenants on a mortgage facility to Could subsequent yr, giving it extra time in its debt restructuring negotiations.
The covenants had already been prolonged twice till mid-December, as Noble battles to recuperate from two years of disaster.
“The corporate has obtained an extension on a waiver in relation to the monetary covenants in its dedicated unsecured revolving credit score facility to 18 Could, 2018,” Noble mentioned in a written assertion on Thursday. It didn’t point out the dimensions of the credit score that bought prolonged to Could.
Noble has financial institution debt of about $1.2 billion and bonds aggregating about $2.three billion.
Noble mentioned “it continues to be in discussions with its collectors”, however added that regardless of the extension “no assurance will be given as to the result of those discussions”.
Noble’s chairman Paul Brough, a restructuring specialist who was appointed this yr, mentioned final Friday it was the corporate’s precedence was to maintain it out of insolvency. [nL4N1OF2KU]
Noble was plunged into disaster in 2015 when Iceberg Analysis began questioning its accounts. Noble has refuted such criticism, however has since tightened its accounting.
The agency was additionally hit by a commodities downturn that began in late 2014, triggering a share value collapse, credit score downgrades, writedowns and administration adjustments. The corporate’s bonds are buying and selling at distressed ranges.
Its monetary woes have resulted within the firm’s retreat from most monetary commodity markets, together with oil, pure gasoline and even coal, Noble’s conventional strongpoint. [nL8N1LA1FG]
The downsizing has additionally performed a component in Noble’s failure to revenue from resurgent commodity costs this yr, together with coal, pure gasoline and oil. [nL3N1OC1TJ]
Noble is headquartered in Hong Kong, however listed in Singapore.
As soon as Asia’s largest commodity service provider with ambitions to rival dominant European buying and selling homes like Glencore (GLEN.L) and Vitol, Noble’s inventory value has crashed from a peak of S$17 Singapore greenback ($12.65) in 2011 to under 25 cents, giving it a market capitalization of simply S$318 million, in contrast with over $70 billion of rival Glencore.
($1 = 1.3442 Singapore )
Reporting by Kane Wu in HONG KONG and Henning Gloystein in SINGAPORE; Enhancing by Joseph Radford
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