Noble Group: Sighting the End of the Restructuring Road
We continue our coverage on Noble Group Ltd (NOBL SP) (“Noble”) with our recommendations under continuing review on the NOBLSP complex given its impending debt-to-equity swap/debt exchange and restructuring into New Noble (“Newco”) bonds.
With the recent run of events and negotiations among all of the company’s vested interest groups over the last few months, it would finally appear that the company’s restructuring is nearing completion. This was affirmed by the recent unanimous vote at the recent SGM where 30.4% of shareholders (consisting of original Noble founder Richard Elman, Goldilocks Investment Company – “Goldilocks” and the junior-subordinated consortium) had already signed irrevocable undertakings committing to the company’s restructuring. As such, we take the opportunity to take stock of immediate next steps for the company, document our market observations and update our Newco debt pricer with Scenario B (without the 75% quorum from NOBLSP perp holders) – changes include the additional USD20m in size to the Trading Holdco bond and priority redemption schedule added to the Asset Co Bond.