Noble Group’s 2020 noteholders notified of default

The United States 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 for bankruptcy.

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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.

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