Noble wins lifeline, shareholders back debt restructuring

singapore — Noble Group won approval from shareholders on Monday for a $3.5 billion debt restructuring plan that should ensure the survival of what was once Asia’s biggest commodity trader.

Faced with the prospect of the company’s insolvency, shareholders reluctantly backed a debt-for-equity swap that will leave them owning just 20 per cent of the business, while handing majority control to a group of creditors comprised mainly of hedge funds.

“It’s obviously a relief to get this out of the way today and to get such a strong support from our shareholders,” Noble chairman, Paul Brough, told reporters after the company won approval from 99.6 per cent of shareholders voting at Monday’s 90-minute meeting in Singapore.

“It’s all about the business now, rather than the restructuring,” Brough said after fielding numerous questions about the restructured firm’s prospects from the shareholders that packed the banquet hall where the meeting was held.

Several small shareholders attending the meeting told Reuters they were angry with Noble’s management as the plan diluted the value of their investments, but said they saw no choice but to support the plan in order to save at least some of their money.

“We want to keep the company afloat rather than liquidate it,” said Roger Ong, 49, a driver who invested in Noble shares. Noble has had its market value all but wiped out from $6 billion in February 2015.