This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Holders of some notes with Noble Group have been informed of a default, the board of directors for Noble said in a statement on the Singapore Exchange on Friday night.
The United States (US) dollar 6.75% fixed rate senior notes due 2020, with a principle amount of about US$1.18 billion face a default after the company filed a Chapter 15 bankruptcy petition in the US.
In an event of default, Noble said the principal amount, any premium gained, and accrued and unpaid interest of the notes is immediately due and payable, without the need for trustee or noteholders to take any action.
The board added that the Chapter 15 bankruptcy filing does not affect its proposed debt restructuring, but seeks to give legal recognition on the scheme - which was created in England - for the US.
Earlier this month, coal supplier Yancoal was said to object over some of Noble’s restructuring terms. Noble had said that such a nature of objection raised by Yancoal is not uncommon in complex international restructurings.
Noble traded lower on Monday morning, down 2.04% or S$0.002, at S$0.096.