Primary tabs

Noble restructuring in doubt as founder Elman said to push for new deal

Bloomberg Published on Tue, Apr 10, 2018 / 7:18 AM GMT+8

A-

A+

LONDON (Apr 10): Richard Elman, the founder and largest shareholder of Noble Group, is pushing the embattled commodities trader's creditors for a new restructuring deal, according to people familiar with the matter, casting fresh doubt on the survival of the company.

Noble needs the support of at least half of the shareholders that vote in a special meeting for a US$3.5 billion ($4.6 billion) debt-for-equity restructuring plan that will all but wipe out exiting equity investors. If shareholders reject the plan, the company plans to file for insolvency in London.

Mr Elman, who resigned from the board last month due to "differences of opinion" with the firm's directors and creditors over its future, is pushing to increase the stake that current shareholders will get in Noble immediately after the restructuring to 15% to 20%, up from 10 per cent under the current deal, the people said, asking not to be named discussing private conversations.