Embattled Hong Kong commodities house Noble Group has reached a deal with senior creditors and ING as fronting bank for a three-year committed $700m trade finance facility. Noble announced the financial breakthrough at the same time as warning its full year losses for 2017 could be as high as $4.975bn, after a damaging final quarter.
The group said it remained confident it could push through with a complex restructuring support agreement with its stakeholders.
Paul Brough, Noble’s chairman, said: “Following a challenging 2017, we are looking forward to the final phase of our restructuring, and the creation of a new Noble as a focused and appropriately financed Group set to capitalise on the high-growth Asian Commodities sector.”
At the end of last month, Noble came to an agreement with creditors to restructure $3.5bn of its debt in exchange for 70% of the company, with existing equity holders’ combined stake diluted to only 10%.
Noble was founded in 1986 by Richard Elman. It has been in trouble since 2015 when Iceberg Research started questioning its accounts. The group’s market value has tumbled from more than $6bn to less than $250m today.