Noble Group slams ‘management enrichment' allegations

Noble claims the accusations are unfounded.

The Noble Group (Noble) has denied the allegations that the management are enriching themselves at the expense of shareholders, calling it unfounded.

“[The] management are essential to the company’s business because its core business are ‘people businesses’,” the Noble responded to a report of The Business Times published on Tuesday about the letter sent by Goldilocks Investment Company to Singapore Exchange (SGX) on Monday.

Abu Dhabi-based Goldilocks Investment Company, which holds 8.1% of Noble’s stock, questioned the commodities trader’s restructuring plan.

The Noble on Monday announced that it has already reached an in principle agreement with an ad hoc group of their senior creditors to restructure its $3.4b debt. Under the deal, creditors will take 70% of the company, whilst the management and existing shareholders will control 20% and 10%, respectively.

The deal will still be subjected to final documentation, regulatory and shareholder approval, and implementation via inter-conditional schemes of arrangement in relevant jurisdictions, said Noble.