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Indebted Noble confirms bank loan relief, but skips coupon payment

Reuters Published on Tue, Jun 20, 2017 / 3:45 PM GMT+8

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SINGAPORE (June 20): Noble Group on Tuesday confirmed it had extended a key debt deadline and was in "constructive" talks with potential investors, but the crisis-hit trader also pushed back payment of the coupon on a closely watched bond.

The decision to defer payment of the coupon on its US$400 million ($555 million) perpetual securities, due June 26, worried investors, who said the failure to pay US$12 million sent a negative signal and suggested lenders may have asked the group to defer payment where possible. Shares slipped after a sharp rise on Monday.

“While non payment of the perpetual bond coupon will not trigger a default event, it is a further hit to the company's reputation. This is hurting investor confidence,” said one Hong Kong-based analyst, who declined to be named.