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Goldilocks urges Noble stakeholders to oppose restructuring approach, seeks more transparency
NOBLE Group's major shareholder Goldilocks Investment Company is calling on Noble's stakeholders to collectively oppose the commodity trader's approach to its restructuring plans.
Goldilocks issued that statement on Friday, following Noble's Feb 5 rejection of its request to be released from non-disclosure arrangements surrounding discussions on Goldilocks' demands for two board seats. Noble cited "extensive and confidential information" that had been shared with Goldilocks under the non-disclosure agreement.
Goldilocks, which owns 8.1 per cent of Noble, said that it has not received a direct reply from Noble on the release request. Without that release, the shareholder argued that it cannot present a comprehensive picture to the investing public.
The investor has expressed concerns that Noble's disclosures do not present a complete and accurate picture. Goldilocks said that Noble has not provided satisfactory answers to the allegations it has raised, and that it is "skirting around the issues and answering selectively".
The Business Times has sought comments from Noble and is awaiting its response.
Goldilocks, in a Jan 29 letter to Singapore regulators, had asked, among other matters, why the firm had disposed of assets at steep discounts to their book values.
Noble said on Feb 5 that it was because the disposals had been undertaken under distressed circumstances.
Goldilocks continued to challenge Noble to disclose and explain itself in relation to these allegations, saying that all stakeholders can then have a level playing field and opportunity to restore and maximise value.
Noble has reached an in-principle agreement with 30 per cent of its creditors which will halve its debts of US$3.5 billion by giving them control of the new entity and asking them to take on new debt instruments.
Under its restructuring proposal, the company that will hold all of its businesses, and assets will ultimately be 70 per cent owned by senior creditors, 20 per cent by the management and 10 per cent by existing shareholders.
Noble's shares traded at 20 Singapore cents at 1.26pm on Friday, unchanged from its previous close.