Noble Group's top creditors seek to draw a line under crisis

(Sept 17): Noble Group Ltd. plans to introduce the schemes of arrangement that underpin its restructuring this week, a key step in the creation of a new company that senior creditors signalled will hold to the highest standards of corporate governance after a drawn-out crisis.

The schemes, which buttress the US$3.5 billion ($4.8 billion) debt-for-equity rescue, will be introduced in courts in London and Bermuda by Sept 21, the commodity trader said on Monday. In a separate release, the company’s ad hoc group, or AHG, of senior creditors said they expected “Old Noble” to file for insolvency, while its successor entity revives the core business overseen by a tough new board.

After years of crisis, losses and defaulting, Noble Group has been putting in place the final elements of the rescue, which will see control handed to the senior creditors. Last month, Noble won shareholder backing for the plan, and it’s said more than 85% of senior creditors are in support. Completion of the overhaul will likely bring fresh scrutiny on whether the slimmed-down company can both turn a profit and service its reduced debt burden while also moving on from the claims of impropriety that marked its implosion.

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