Noble confirms lenders agree to extend credit facility deadline


Reuters

UPDATE 1-Noble confirms lenders agree to extend credit facility deadline


* Defers coupon payment on perpetual securities
    * Says continues to be in talks with potential investors
    * Says in talks with bankers over credit facility due May
2018

 (Adds quotes, details from Noble's statement)
    SINGAPORE, June 20 (Reuters) - Noble Group Ltd <NOBG.SI>
confirmed on Tuesday that its lenders had agreed to push back a
repayment deadline by four months and said it continued to be in
talks with potential investors about the sale of an interest in
the company or parts of its business.
    The Singapore-listed firm also said it had deferred payment
of the coupon on its $400 million perpetual securities due on
June 26.
    The company had persuaded banks to extend the $2 billion
credit line, due to be rolled over by the end of this week, but
it was asked to find a strategic investor, a person familiar
with the matter told Reuters on Friday. [nL3N1JD3EI]
    The company on Tuesday said it was also continuing talks
with its bankers in relation to its revolving credit facility
due May 2018. Its major bankers, based in Europe, the United
States and Asia, have hired legal and financial advisers to
enhance these discussions, Noble said in its statement.
    "Whilst no assurance can be given as to the outcome of these
discussions, the group believes that these are constructive and
are being conducted in good faith by all parties," it added.
    Noble said it expected to complete its previously announced
strategic review once the discussions with the banks and with
potential investors became clearer.
    "The results of this review are likely to include an asset
realisation programme to maintain liquidity and a further
reduction in overhead expenses," it said.
    Noble has struggled since Iceberg Research questioned its
accounts in early 2015 amid a brutal downturn in commodity
markets. The company, which has stood by its accounts, has been
trying to meet its debt obligations and has been forced to cut
the scale of its operations.
    Its shares closed up about 46 percent on Monday.
[nL3N1JG146]

 (Reporting by Aradhana Aravindan; Editing by Stephen Coates)
 ((aradhana.aravindan@thomsonreuters.com; +65 6403 5659; Reuters
Messaging: aradhana.aravindan.thomsonreuters.com@reuters.net))

Keywords: NOBLE CREDIT/ (UPDATE 1)



This article appears in: Politics , World Markets , Stocks
Referenced Symbols:


More from Reuters

Subscribe






See Reuters News

Follow on:








Research Brokers before you trade

Want to trade FX?