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Noble plans to file to Bermuda court to implement restructuring

Photo of Noble Group logo. Reuters file photo
Photo of Noble Group logo. Reuters file photo

Noble Group plans to apply to a Bermuda court for a hearing on 14 December for a court-appointed officer to be assigned to the company in order to implement its proposed financial restructuring.

“The board 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, since existing shareholders of the company will continue to be allocated a 20 per cent interest in New Noble in this approach,” Noble said in a filing to the Singapore Exchange on Tuesday (11 December).

In the event the former commodities giant is unable for any reason to complete the restructuring in accordance through this avenue, the company would be forced to enter into a full liquidation process, Noble said.

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If that happens, there will be no recovery for shareholders and holders of the company’s perpetual capital securities and also materially lesser recoveries for creditors, the statement said.

The board said that the court-appointed officer will be appointed to the company only and not to any of its subsidiaries, which will continue to trade as per normal. The daily operations of the group won’t be affected, the company said.

Subject to the order being made by the Bermuda court on 14 December, the board anticipates that the restructuring effective date will occur on 18 December 2018 and the perpetual capital securities exchange will be implemented as planned.

The proposed move comes after Singapore authorities on 6 December said Noble won’t be allowed to transfer its listing status to the restructured entity New Noble as part of the proposed US$3.5 billion debt rescue plan.

The regulators made the decision after reviewing the findings of an ongoing investigation by the Monetary Authority of Singapore, the Commercial Affairs Department and Accounting and Corporate Regulatory Authority, into Noble and its unit Noble Resources International. The probe involved false and misleading statements, breaches of disclosure requirements, and non-compliance with accounting standards.

The board said that to allow more time to complete the restructuring, the company has agreed to an extension of the long-stop date under both the English and Bermuda schemes from 11 Dec. to 31 Dec., 8.59am London time to allow further time to complete the restructuring.

Noble also expects to agree to an extension of the original long-stop date under the restructuring support agreement (as amended and restated on 5 November 2018) from 11 December 2018 to 8.59 a.m. London time on 31 December 2018 with the consent of the majority consenting creditors, DB and ING.

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?