Noble Group flags $5-bn loss as debt deal endgame nears

Noble Group, the commodity trader battling to survive, warned that it’ll report another vast loss including from the operations meant to sustain a revamped business, and while it signaled progress in debtrestructuring talks, hurdles to a deal remain.

The Hong Kong-based company will report a net loss of $1.73 billion to $1.93 billion for the final quarter of last year, potentially bringing losses for 2017 to almost $5 billion, it said in a statement early Monday. That meant it had a negative net-asset position of $650 million to $850 million at December 31.

Noble Group announced an initial deal to restructure $3.5 billion in debt last month, fending off bankruptcy after a threeyear crisis marked by losses, writedowns and controversial accounting. Since that debt-forequity plan was unveiled, the proposal has drawn fire from a top shareholder as well as some bondholders.

The expected fourth-quarter loss “results in a negative net-asset position,” it said. “However, the board believes that the proposed restructuring, once implemented, should restore shareholders’ equity and create a sustainable capital structure which will allow the group to rebuild its business in Asia.” As part of the proposed deal, Noble Group has reached an in-principle agreement with an ad hoc creditors’ group and ING Groep NV, as a fronting bank, for a three-year $700 million finance facility, it said in the statement. That’s to be made available when the restructuring is effective.

The 2022 notes gained 0.2 cent to 49 cents on the dollar by 5:16 pm in Singapore, according to Bloomberg-compiled prices.