Noble Group Chairman says debt restructuring talks with creditors "constructive"

Noble Group logo. Reuters

Noble Group's Chairman on Thursday said the company is in talks with creditors to restructure its debt and negotiation have been "constructive" and are moving forward.

Paul Brough declined to confirm a media report that Noble had reached an agreement with creditors to restructure about $3.5 billion in debt, but he said he hoped things were moving in the right direction.

"Those talks have been going for a couple of months," said Brough at a shareholders meeting in Singapore.

Noble has reached an agreement with its creditors to restructure its debt, Debtwire reported on Thursday, citing sources it did not identify.

Also Read: China's Cedar interested in buying Noble Group

Earlier this week, Bloomberg reported that Chinese conglomerate Cedar Holdings Group has expressed interest in buying commodities trader Noble Group.

Cedar has made an informal approach to some major Noble Group shareholders, although no formal talks have started, the report said citing people with knowledge of the matter.

Noble has been forced to shrink its business, exiting loss-making and non-core operations in order to survive.

The Hong Kong-based firm last week completed the sale of Noble American oil business to Vitol U.S. Holdings about $580 million.

Noble announced the surprise departure of its co-Chief Executive Jeff Frase last year, just days after it reported a third-quarter loss of $1.17 billion and warned that the operating environment remains challenging.

The trader's market capitalization, which once topped $10 billion, has shrunk to $260 million.

This article was first published on January 25, 2018