Noble Group Grasps Debt Lifeline

Indebted commodities giant Noble Group has secured a 120-day extension for its USD 400 million credit facility from June 20, 2017.

In addition, the Hong-Kong-based firm said it continues to be in talks with potential investors concerning the sale of an interest in the group or its subsidiaries or parts of its business.

“Whilst no assurance can be given that these discussions will result in a transaction, they are ongoing and constructive,” Noble added.

Furthermore, constructive talks are also said to be underway with bankers in relation to the firm’s revolving credit facility due May 2018. As disclosed, the group’s major bankers, based in Europe, the United States and Asia, have hired legal and financial advisers to “enhance these discussions.”

Once the discussion with the banks is concluded, Noble expects to complete its strategic review, which will mostly likely result in an asset realization program “to maintain liquidity and a further reduction in overhead expenses.”

The group, which manages a portfolio of global supply chains across a range of industrial and energy products, including iron ore, energy coal and grains, has been fighting for survival for several years now.

Noble has over 100 vessels on charter, which are either owned, bareboat, time charter period or hired for single trips, the company’s website info shows.