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(Mar 23): Noble Group’s week of woe just got worse as the commodity trader, which has defaulted on its debt and seen founder Richard Elman quit the board, said that it’s being sued by an Indonesian coal producer for more than a quarter of a billion dollars.

The Hong Kong-based trader “has become aware” that PT Atlas Resources has filed a lawsuit in Indonesia against the company seeking compensation of more than US$260 million ($341.8 million), it said in a statement on Friday. “The company is not aware of the grounds for the claim or any further details relating to the same. Nonetheless, the company intends to vigorously defend any claim if served.”

Once Asia’s largest commodity trader, Noble Group has faced a mounting crisis over the past three years as it lost billions of dollars, parried criticism of its accounts and sold assets in a bid to survive. Chairman Paul Brough is now racing to push through a restructuring, which will hand control to creditors. The case from PT Atlas highlights the mounting risks to that complex plan.

On Thursday, Noble Group said that it’s possible, though unlikely, bondholders could force it into liquidation, although it argued that any attempt by creditors to wind it up after the default would likely fail. That followed a blow on Tuesday, when major shareholder Goldilocks Investment sued the company. Elman’s resignation as a non-executive director was announced midweek.

See: Noble Group sued by top investor as trader defaults on debt

See also: Goldilocks says founder Elman's resignation paves way for 'fairer' debt restructuring plan

Noble Group’s shrink-to-survive strategy has seen the company sell off businesses worldwide, scaling back to its Asian roots with a rump business focused on coal trading. Atlas’s 2016 annual report says it has a “longstanding agreement with Noble Resources, a prominent global marketing agent.”

PT Atlas’s case, which was registered in the Central Jakarta court on March 19, is against Noble Group, Chief Executive Officer William Randall, as well as Noble Resources International Pte, related to sales of PT Alhasanie, PT Borneo Minerals and PT Sumber Daya Kumala, the Indonesian company said in an exchange statement dated March 21. PT Alhasanie and PT Borneo Minerals are Atlas units, while PT Sumber Daya Kumala is no longer a unit, it said.

As Noble Group’s crisis has escalated, the company’s market value in Singapore has plummeted to about US$100 million, with some major shareholders trimming stakes this week, including Prudential Plc. Under Brough’s debt-for-equity restructuring plan it’s proposed that senior creditors will take the largest stake in a new company, diluting existing holders.

See: Noble calls for surprise trading halt after bond default