Noble Group

[cyclone]

Noble Group Denies ‘Enriching' Claim as Rescue Plan Ignites Spat

By Jasmine Ng  and Andrea Tan
January 31, 2018, 5:41 PM GMT+8

Noble Group Ltd. responded to criticisms by one of its biggest shareholders about the embattled commodity trader’s conduct, and defended the debt rescue plan that’s set to hand management a bigger stake than equity investors.

Abu Dhabi-based Goldilocks Investment Co. wrote to the Singapore Exchange Ltd. this week requesting an investigation into Noble’s directors and management, according to a copy of the letter seen by Bloomberg. On Wednesday, Noble responded to those claims by saying its actions and public statements have been under “the regulatory microscope”, according to a statement to the Singapore bourse.

The complaint from Goldilocks highlights some of the challenges for Noble and creditors that have backed the rescue plan, which follows a three-year crisis marked by billions in losses, asset sales and controversial accounting. Noble’s in-principle deal proposes restructuring $3.5 billion in debt, potentially averting bankruptcy, by converting about half of the obligations into new equity.

That plan -- if approved -- will see all existing shareholders, including Goldilocks, cut to a 10 percent holding, while management of the new company gets as much as 20 percent. Goldilocks holds 8.1 percent of Noble Group’s stock, or 107.6 million shares. Singapore’s capital markets are regulated by the SGX, as well as the Monetary Authority of Singapore.

More details in https://www.bloomberg.com/news/articles/...nites-spat

[corydorus]

I thought Noble is today when their mgmt has even larger interests. What was the outcome ? Their track record on performance has been disappointing.

Never been vested ... ( i did a quick cutloss trade within a week in/out in 2016 ... )

[yeokiwi]

http://infopub.sgx.com/FileOpen/Market%2...eID=489429


As a result, the Group expects to report a total net loss in the range of US$(1,725) to US$(1,925)
million in 4Q 2017 and a total net loss for the year ended 31 December 2017 in the range of
US$(4,775) to US$(4,975) million.
The expected net loss in 4Q 2017 results in a negative net asset position for the Group in the range
of US$(650) to US$(850) million at 31 December 2017.


Wiping out close to US$5 billion in a year. Is it a record in SGX stock history??

[cfa]

People still willing to pay 0.20 per share for a negative equity company ?

[CY09]

---

As of Q3's report, Noble still has 1.25 billion in net fair value gain from its derivatives. At the start of this FY, Noble had 3.78 bil in fair value gains and 1 bil in net fair value losses; giving it a net fair value gain of 2.7 billion. Subsequently, Noble wrote down an impairment of 1.25 bil to 1.3bil on this line of the balance sheet and has about 1.25 net fair value gain on its balance sheet. This is a worrying sign. It signals the possibility that only 10-15% of Noble's fair value derivatives may be "real"/relizable.

If this is indeed true, this means Noble still has about 1 billion to write down. Should that happen, this means the current equity of 1 billion will be wiped out (including the US$400 mil equity which belongs to perpetual holders). From Noble's unwinding, my stand in the 1H2017 has now changed to that ordinary shareholders of Noble are holding worthless paper certificate.

The predicament at Noble seems not to be in favorable terms now. Noble too has been cutting headcount and their company is down to 400 employees currently.

I am surprised to the extent Noble wrote down on its fair value derivatives. In it's latest release FY, Noble's net fair value derivative is only 1.25 billion, writing off 1.7 billion instead means that some of the derivative asset on its balance sheet is worth a lot less than stated

As to why people are still buying above 20 cents, it could be because they are banking that all creditors agree to the new term and that perp holders take a more than 90% haircut. Perhaps then Noble can engineer a turnaround and become positive equity.

[Behappyalways]

Explaining Noble Group's Controversial Survival Plan
https://www.bloomberg.com/news/articles/...-quicktake

[desmondxyz]

Explaining Noble Group's Controversial Survival Plan
https://www.bloomberg.com/news/articles/...-quicktake

Management who is most responsible to the disaster still getting 20% while perpetual bondholders were thrown under the bus with 3.75cts for every dollar...A tough war is ahead....

[kikababoo]

Explaining Noble Group's Controversial Survival Plan
https://www.bloomberg.com/news/articles/...-quicktake

Management who is most responsible to the disaster still getting 20% while perpetual bondholders were thrown under the bus with 3.75cts for every dollar...A tough war is ahead....

The management needs to be incentivized. The fact that the management needs to be incentivized with 20 percent of company stock, suggest how little the entire post restructuring 100 percent equity would be worth.

(Vested before while I was stupidly ignorant and ran away with no loss... noble group ll always be a lucky lesson learnt for me)

[kikababoo]

Noble treatment of perp holders will also serve as a goodcase study to other perp instruments traded on sgx. A group of small lender with insufficient coordinated voice to drive restructuring outcome and non equity holder with no votes. Bound to gent eaten alive

[cyclone]

Top Noble Group Shareholder Attacks ‘Shocking’ Expected Loss

By Jasmine Ng
February 27, 2018, 9:39 AM GMT+8

One of Noble Group Ltd.’s top shareholders has stepped up its criticism of the commodity trader, describing expected losses as “shocking” and warning that the billions in red ink may pile more pressure on investors to agree to a debt-for-equity rescue plan.

The net losses will “erode what little cash Noble has left, and puts further pressure on stakeholders to accept the restructuring proposal,” Goldilocks Investment Co. said in a statement on Tuesday, referring to more writedowns on derivatives contracts as well as fourth-quarter losses on its core business. “These figures are extremely shocking.”

Noble Group, which is scheduled to report earnings on Wednesday, warned last week it will post a loss for the final three months of last year, bringing its expected loss for 2017 to almost $5 billion. While the Hong Kong-based company is seeking to get investors to agree to the rescue plan, which will hand control of the group to creditors and give management a holding of up to 20 percent, Goldilocks is leading opposition to the proposal.

More details in https://www.bloomberg.com/news/articles/...ute-flares