Noble Group finally completes restructuring plans

A total of $1.09b in new money debt is available to New Noble.

Noble Group has completed its restructuring plans which will enable the firm to move forward under its new holding firm Noble Group Holdings also known as New Noble, an announcement revealed.

The completed restructuring will allow the firm to carry forward its business plans to become Asia’s leading independent energy products and industrial raw materials supply chain manager, as well as build its value for its stakeholders, the firm added.

According to the firm, New Noble will tap into its regional network in Asia and around the world to facilitate marketing, processing, financing and the transportation of essential raw materials between producers and users.

Also read: Noble Group secures bid extension for restructuring

“The restructuring of the Noble Group is a landmark transaction in the region and a tremendous accomplishment for all those involved,” Joseph Swanson, senior managing director at Houlihan Lokey which is the financial advisor to the firm’s ad hoc group of creditors, said in a statement. “Between the new $1.09b (US$800m) trade finance and hedging facilities and a substantial deleveraging of the balance sheet, New Noble is well positioned to play a leading role in the Asian hard commodities business going forward.”

A separate announcement by the firm noted that the shares in New Noble are now held 70% by its senior creditor special purpose vehicle (SPV), 20% by the company's shareholders and 10% by the management SPV. In addition, it announced that its existing notes and existing perpetual capital securities are expected to be listed on 21 December.

In conjunction with this, the firm also announced the resgination of Wayne Porritt and Tim Isaacs who joined Noble's board of directors as independent non-executive directors in March and April, respectively.

Noble Group’s restructuring effective date was originally slated for 19 December before being pushed back to 20 December. The firm was able to follow through with its plans after a Bermuda court approved an officer to continue Noble’s deals on 14 December.

The firm’s initial re-listing plans were blocked at the last moment by an investigation from the Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) on the back of ‘significant uncertainties’ of New Noble’s financial position.