Noble Group warns survival hangs on deal after immense loss

SINGAPORE (Mar1): Noble Group said a controversial debt restructuring was the only hope for survival after a US$4.94 billion ($6.55 billion) loss triggered a warning from its auditor that the commodity trader may not be able to continue operating.

Chairman Paul Brough said he had "no magic pill" for investors facing hefty losses under a planned restructuring that would halve Noble’s US$3.5 billion debt. He warned that no deal with a strategic investor was likely before the restructuring is completed, and that the alternative to the deal was a court-driven insolvency process that would be "very damaging indeed".

"What we’re focused on is trying to get all of the parties over the line," Brough said on a call. "I do accept that it requires an allocation of some pain and discomfort, but I’m afraid that there’s no magic pill to solve it."

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