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Singapore reputation seen at risk as Noble Group fight rages

Bloomberg Published on Tue, Apr 24, 2018 / 6:16 PM GMT+8

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SINGAPORE (Apr 24): Noble Group dissident shareholder Goldilocks Investment Co. says the Singapore regulator’s handling of the trader’s drawn-out battle for survival is being closely followed by overseas investors, highlighting the importance of the case for the city-state’s reputation as a financial hub.

“This was our first investment into Asia: we were looking at this as making an investment into Asia, especially in Singapore,” Ajit Vijay Joshi, a fund manager at Abu Dhabi-based Goldilocks, said in a phone interview. He added: “I’m sure a lot of other people are watching what they will do.”

Once Asia’s largest commodity trader, Noble Group has imploded over the past three years, losing billions, defaulting on US$3.4 billion of debt, and shredding its market value. That decline has been marked from the outset by allegations of improper accounting by long-time foe Iceberg Research, which the company has denied. While Noble Group Chairman Paul Brough is now pushing a debt-for-equity rescue, Goldilocks is resisting, saying it’s unfair in its current form, and appealing to Singapore Exchange to address its concerns.