Release clause in Noble's restructuring plan raises concern

Hong Kong

AS EMBATTLED commodities trader Noble Group Ltd scrambles to win support for its controversial debt restructuring proposal, one focus among some observers is a clause in the plan that releases the company and its representatives from claims made by senior creditors.

On page 5 of the restructuring term sheet, the clause states that the arrangement provides the "full release of any and all other claims" that any senior creditor may have against Noble Group, its management, directors, advisers, agents and representatives in relation to its existing senior debt.