Noble Amends Restructuring Plan, Scrambles for Shareholder Support

Posted by Joseph Keefe
Thursday, April 19, 2018
Noble's action on shareholders was criticised by SGX; Noble needs shareholders to support its restructuring.
Bowing to criticism from the Singapore Exchange (SGX) and other investors, embattled Noble Group is removing a provision in its $3.4 billion debt restructuring proposal that penalised shareholders voting against the plan.
The debt-for-equity swap is crucial for the survival of the Singapore-listed company, which has sold billions of dollars of assets, taken hefty writedowns and cut hundreds of jobs over the past three years to slash debt.
Noble has secured the backing of its creditors, but it also needs approval from a majority of its shareholders.
"If more than half of the shareholders vote in favour of the restructuring, all shareholders, irrespective of their vote at the special general meeting, will receive the same treatment and will participate in the restructuring," Chairman Paul Brough said in a letter addressed to shareholders and sent to SGX late on Wednesday.
Last month, SGX's regulatory unit criticised Noble's proposal and said shareholders should be able to vote freely and their vote should not have a bearing on whether they are entitled to shares in the restructured company.
Noble is seeking to halve its debt and hand over 70 percent of the restructured business to creditors, who are mainly made up of hedge funds. Existing shareholders will get 15 percent equity in the new company.
Once Asia's largest commodity trader, Noble was plunged into crisis in February 2015 when Iceberg Research questioned its books. Noble has stood by its accounting.
Noble has warned that it is likely to enter into a formal insolvency or bankruptcy process if shareholders vote against the restructuring plan.
In an eight-page letter sent on Wednesday, Brough laid out why the restructuring was the only option for the company's survival as it was already in default on its $3.4 billion of its debt obligations.
"The company has few options and it is running out of time," said Brough, adding that the restructuring also provides Noble with a committed trade finance facility of $700 million.
This week, Noble won the support of its founder and biggest shareholder, Richard Elman, who holds about 18 percent of its shares after it sweetened the terms of its proposal for shareholders. Some other equity holders have opposed the plan.

Noble has not yet set a date for shareholders to approve the restructuring.

Reporting by Anshuman Daga and Aradhana Aravindan 

Categories: Contracts Legal Finance Energy Fuels & Lubes Government Update

Related Stories

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

Vietnam to Open Bidding Round for Three Offshore Oil Blocks

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

Keel Laying for Wind Flyer Trimaran Crew Boat

SLB Names Raman CSO, CMO

Eco Wave Finds Partner for Wave Energy Project in India

Sunda Energy Starts Environmental Survey for Timor-Leste Oil and Gas Field

China's CNOOC Aims for Record Oil and Gas Production in 2025

Europe's Gas Uncertainty Help Drive Asian LNG Spot Prices Higher

Current News

TMC Books Compressors Orders for FPSO and LNG Vessels

MODEC, Sumitomo Partner Up for Delivery of Gato do Mato FPSO

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com