Time bomb ticks louder for Noble as it as it undergoes debt restructuring

It's waiting for lenders to extend the waiver for its US$1.1b revolving credit facility.

Bloomberg reports that Noble Group Ltd., the embattled commodities trader, faces a key deadline on Wednesday that could complicate its negotiations with creditors as it wrestles with a US$3.5b debt restructuring.

Lenders had agreed to waive certain rights under terms Noble Group committed to for its US$1.1b revolving credit facility until 20 December. The company is talking to creditors about a restructuring that includes a debt-for-equity swap, according to people familiar with the negotiations. The big question is whether lenders will agree to extend the waiver.

As Noble Group fights for survival, global investors will be watching talks closely. Once Asia’s largest commodity trader, Noble’s decline since 2015 has been marked by losses, concern it won’t pay its debt and allegations from long-time foe Iceberg Research that it inflated the value of some contracts.

Read the full report here.