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Noble may seek court-appointed administration after Singapore bars new relisting
Noble Group may seek to implement its restructuring through a court-appointed officer, after Singapore authorities barred the re-listing of its shares as part of its US$3.5 billion debt restructuring plan.
The board, which still intends to complete the restructuring, said that it is weighing alternative processes that do not involve a transfer of the company’s listing status, in a filing to the Singapore Exchange on Friday (7 December).
“In doing so, the Board, in discharging its fiduciary duties, may implement the restructuring through a court-appointed officer,” the statement said.
Noble said in a circular in August that if its first-choice plan fails, the alternative restructuring, or Plan B, would involve filing for administration in the United Kingdom.
The Monetary Authority of Singapore and Singapore Exchange Regulation (SGX Regco) on Thursday said it will not allow Noble to transfer its listing to New Noble, after reviewing the findings so far of an ongoing probe into the company by MAS, the Singapore police’s Commercial Affairs Department (CAD) and the Accounting and Corporate Regulatory Authority (ACRA).
“There are significant uncertainties about the financial position of New Noble,” they said in a statement, referring to the restructured unit.
“It would be imprudent to allow the re-listing as investors will not be able to trade in New Noble’s shares on an informed basis. MAS and SGX Regco will therefore not allow the re-listing of New Noble to proceed,” the statement said.
The decision by the MAS and SGX Regco came two weeks after the authorities announced its investigation into Noble and its unit Noble Resources International. The probe involved suspected false and misleading statements and breaches of disclosure requirements, as well as potential non-compliance with accounting standards.
The Singapore authorities said on Thursday that after the investigation started, Noble had submitted simulated financial statements which took into account potential non-compliance with accounting standards highlighted by ACRA in its letter to Noble’s unit.
The simulated financial statements show that the net asset value (NAV) of New Noble as at 31 December 2017 could be adjusted downwards by about 40 per cent, and that the NAV as at 31 March 2018 could be adjusted downwards by about 45 per cent.
Noble said in the statement on Friday that the simulated financial statements cited by the authorities’ most recent joint statement were submitted on a confidential basis. They do not represent the views of the company and were intended only to illustrate the effects of applying ACRA’s accounting positions.
Noble Resources said it disagrees with the positions taken by ACRA and plans to submit a comprehensive response regarding the investigation into the company’s technical accounting.
Amid the regulatory probe, Noble had extended the deadline to complete its debt restructuring deal from 27 November to 11 December, and said it was cooperating fully with authorities.
Once Asia’s largest commodity trader, Noble’s troubles began in February 2015 after Arnaud Vagner, a former employee, published anonymous reports – under the name of Iceberg Research – that accused Noble of inflating its assets.
Related stories:
Noble Group extends restructuring deadline to 11 December
Singapore probes Noble on suspected false statements, disclosure breaches
Where Does Noble Investigation Leave $3.5 Billion Restructuring?