Former Temasek director Michael Dee calls for forensic accountant to look into Noble

SINGAPORE (Aug 27): Shares in debt-laden commodities supplier Noble Group were up 33.9% in the week before a key vote on its restructuring. The Straits Times Index had gained 1.3% in the same period. Noble’s rebound may have been driven by Deutsche Bank’s offer to buy the company’s senior unsecured bonds at 45% of face value. Noble is currently in default of debt obligations worth US$3.5 billion ($4.8 billion), and in the absence of a successful restructuring will be required to seek insolvency protection or go into liquidation.

See: Iceberg's Vagner slams Noble restructuring, calls securities holders to join in lawsuit

Investors may see Deutsche Bank’s offer as a sign that the bank is confident of a Noble recovery. But, the bank is serving its own interest in supporting a plan that would turn Noble around. Deutsche Bank already has some senior claims on Noble and is among the parties that have agreed to underwrite additional financing for a restructured Noble. In March, Deutsche Bank joined an ad hoc group in signing a restructuring support agreement that provides for a three-year committed US$600 million in trade finance and a US$100 million hedging facility.

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