Noble Group skips payments on 2018, 2022 notes amid restructuring

By Marisa Wong

Morgantown, W.Va., March 16 – Noble Group Ltd.’s board of directors announced that the company has not and will not be making the payments due on its 3 5/8% senior notes due 2018 and 8¾% senior notes due 2022.

The scheduled payments include principal amounts and accrued interest due on March 20 for the 2018 notes and an overdue coupon announced on March 12 for the 2022 notes.

The board said Noble is not making the payments according to the terms of the restructuring support agreement entered into on March 14 between the company, members of the group’s management and an ad hoc group of its creditors.

The board said it has taken into consideration the advice from the group’s legal and financial advisers and has consulted “extensively” with the ad hoc group.

The company said that the proposed restructuring of all of its unsecured debt under the terms of the restructuring support agreement requires it to address all amounts due on the 2018 and 2022 notes along with all other unsecured debt. However, the amounts will be restructured according to the proposed plan and not paid according to the terms of the securities in order to preserve the company and its assets during the process.

The company noted that there is no certainty that the proposed restructuring will be completed or that no changes will be made to the restructuring terms.

Noble Group is a Hong Kong-based conglomerate that focuses on raw materials.

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