Yancoal to file legal objection to Noble's restructuring

Singapore

NOBLE Group on Wednesday flagged that Yancoal Australia and certain of Yancoal's affiliates intend to file objections to the constitution of classes and the schemes under the restructuring plan put out by the commodities firm.

Yancoal, which is labelled as a potential "other scheme creditor", is also set to challenge the jurisdiction of the English courts.

"The company's advisers note that objections of the nature raised by Yancoal are not uncommon in complex international restructurings," Noble said in a statement.

"The board continues to strongly believe that the restructuring is in the best interest of all stakeholders."

Noble said that it expected to issue an explanatory statement to scheme creditors on Oct 16. It has meanwhile applied to both the High Court of Justice of England and Wales, and the Supreme Court of Bermuda to begin scheme meetings. The hearing in London is scheduled on Oct 12, and that in Bermuda on Oct 15.

In August, Noble won overwhelming approval from shareholders to push through with its do-or-die debt-for-equity rescue plan. Under the controversial restructuring plan, Noble will hand over a bulk or 70 per cent of the equity to senior creditors, 10 per cent to management and the rest to existing shareholders.

A key group of Noble's senior creditors said last month that they will focus the post-restructuring company on a limited number of market segments and are assembling a board of directors committed to "the highest levels of ethical comportment".

The group of senior creditors said through an open letter that after restructuring, the plan is for Noble to focus on energy coal, met coke, carbon steel materials, liquefied natural gas and aluminium, where the company has historically been the most profitable and within the historical competency of the management team.

Separately, Noble said after the market close that it has sold its beneficial interests in Indonesian company Kaltim Bio Energi for a nominal US$1 in cash. The buyer, Wadash Enterprises, also assumes all the outstanding payables, including US$10.4 million that the unit owes to the group. The deal does not affect the proposed debt restructuring, Noble added.

Noble stock shed 0.6 Singapore cent, or 4.65 per cent, to S$0.123.