Noble to seek hearing in Bermuda court to complete restructuring

Singapore

TROUBLED commodities trader Noble Group said that it will apply to the Bermuda court for a hearing on Dec 14 to complete the restructuring of the company into New Noble.

In a filing with the Singapore Exchange on Tuesday, the board of the commodity trader said that such a course of action is "the only means available to it" to implement restructuring that is in the interests of all stakeholders of the company.

Under the current restructuring plan, existing shareholders are supposed to receive a total of 20 per cent of shares in New Noble - but Singapore regulators have not permitted Noble's listing status to be transferred to New Noble.

Noble said: "This approach is intended to preserve the underlying business and operations for the benefit of its stakeholders."

If the company cannot be restructured in this manner, Noble said that it will have to enter a full liquidation process. This will result in no recovery for shareholders and holders of the company's perpetual capital securities, and also materially lesser recoveries for creditors.

Noble said: "The board anticipates that, subject to the order being made by the Bermuda court on Dec 14, the restructuring effective date will occur on Dec 18 and the perpetual capital securities exchange will be implemented as planned."

Therefore, the company has agreed to an extension of the long-stop date under both the English and Bermuda schemes from Dec 11 to Dec 31, 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 to Dec 31, 8.59am London time.

Noble said that its "board remains of the strong view that the restructuring is in the best interests of all of the company's stakeholders, including its creditors and shareholders, and has taken steps so that the restructuring may be implemented save for the transfer of the listing."

Day-to-day operations of the group remains unaffected and business should continue as usual.