(May 15): Embattled commodities trader Noble Group reported a smaller quarterly net loss as it enters a make-or-break phase ahead of shareholder meetings and legal rulings over the next few weeks that will decide the company’s fate.
Once Asia’s largest commodity house, Singapore-listed Noble has shrunk its business after selling billions of dollars of assets, taking hefty writedowns and cutting hundreds of jobs over the past three years to raise funds and slash debt. On Tuesday, Noble posted a net loss of US$72 million ($96 million) in the January to March period versus a loss of US$129 million a year ago, although revenue fell 37% to US$1.2 billion.
See: Six burning questions Iceberg wants Noble Group to answer at 1Q18 conference call
The company said that though global commodity prices strengthened in the first quarter, “the group’s performance continues to be impacted by the ongoing constraints on liquidity and availability of trade finance to support its operations.”
Noble was plunged into crisis in February 2015 when Iceberg Research questioned its books, and its market value has collapsed since then to barely US$80 million from US$6 billion.
The company has defended its accounting and is seeking approval from shareholders to halve its US$3.4 billion debt in return for handing over 70% of equity to senior creditors, mostly a group of hedge funds.
Abu Dhabi-based Goldilocks Investment Co Ltd, which holds 8.1% in Noble is resisting the proposal and has filed complaints and lawsuits against Noble, arguing that the plan protects creditors at the expense of shareholders.
