Noble Group perpetual holders unite to oppose restructuring

(Feb 28): Holders of Noble Group Ltd.’s perpetual bonds joined forces to oppose the embattled commodity trader’s US$3.5 billion ($4.6 billion) restructuring plan.

The group, which says it collectively holds more than 25% of the perpetual bonds, has hired lawyers Latham & Watkins LLP to negotiate a better deal or "exercise remedies" against the Hong Kong-based company, according to a statement sent by Kevin Wu, portfolio manager at Pinpoint Asset Management Ltd. in Hong Kong, one of the holders.

Perpetual bondholders would receive a US$15 million payment in exchange for notes with a face value of US$400 million under the proposed restructuring plan that was unveiled last month. That’s seen as a raw deal for perpetual holders given equity investors will retain 10% of shares in the new company.

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