Noble Group says it won't repay bond as it seeks debt deal

SINGAPORE (Mar 18): Noble Group said it will miss interest and principal payments due this month on two separate bonds, putting it on course for an event of default on its debt after a long-running crisis that has left the commodity trader fighting for its life.

The Hong Kong-based trading house won’t repay US$379 million ($499 million) coming due on March 20, as it seeks to preserve the company’s assets “for the benefit of all stakeholders during the implementation of the proposed restructuring,” it said in a statement on Friday. Noble will also miss a coupon payment due last week on US$750 million of bonds maturing in March 2022, for which it can use a 30-day grace period.

The failed payments are set to prompt an “event of default” under the terms of its bond documents. That, in turn, will likely trigger payouts on credit default swap contracts tied to the company and activate cross-default clauses on other debts, according to law firm Eversheds Sutherland.

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