Noble Group has reached a deal with creditors to restructure $3.5 billion in debt, Bloomberg reported on Monday.
The deal will convert half of the debt -- roughly $1.7 billion -- into new equity, the report said citing people familiar with the matter.
At the same time, the deal will wipe out the majority of the equity of current shareholders.
Noble Group could announce the deal as soon as today, the report said.
Noble's Chairman Paul Brough on Thursday said the company is in talks with creditors to restructure its debt and negotiation have been "constructive" and are moving forward.
Noble Group's long-time foe Iceberg Research urged creditors to reject the debt-for-equity swap after Debtwire reported that the commodities trader had reached an agreement to restructure its US$3.5 billion debt.
Singapore-listed Noble Group, which commenced its strategic review last year, has been forced to shrink its business, exiting loss-making and non-core operations in order to survive.
The company has taken massive write-downs and sold assets at a loss to raise funds amid a liquidity squeeze, while at the same time attempting to get creditors to agree to restructure $3.5 billion in bonds and loans.