Deals
Noble Group Moves Toward Debt-for-Equity Restructuring
- Asian commodities trader expecting new proposal from creditors
- Current equity holders could see their stakes sharply reduced
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Noble Group Ltd. is talking to creditors about a conventional restructuring that includes a debt-for-equity swap, according to people familiar with the negotiations, a move that represents a change of tack as the commodities trader fights for survival. The shares extended their surge.
After meetings in Hong Kong last week, the company is expecting a proposal from its creditors to restructure $3.5 billion in debt, including a major debt-for-equity element, the people said, asking not to be identified discussing private talks. Depending on its size, the swap could wipe out a significant portion of the shareholdings of current investors.