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Noble Group Routed Again as Worst-Case Outcomes Get Scrutiny

  • ‘Hard to see the light at the end of the tunnel,’ IG Asia says
  • Macquarie’s Werner halves price target to 70 Singapore cents
Updated on

Noble Group Ltd. shares extended a spectacular collapse and the company’s bonds fell amid concern that the embattled commodity trader will struggle to turn around its business, with analysts highlighting the critical importance of creditor support as they examine potential worst-case scenarios.

The company might have to restructure if operations don’t turn the corner and a white knight doesn’t step in within about six months, Harsh Agarwal, an analyst at Deutsche Bank AG, said in a note, while seeing the bonds as a “buy” after their decline. Although Noble Group isn’t close to liquidation, recovery rates are in line or higher than current prices, he wrote in the May 12 note.