(Mar 26): Noble Group’s Richard Elman resigned as a non-executive director as the commodity trader he founded decades ago struggles to secure its survival, with his decision announced a day after the firm slid into default.

The departure of Elman, who remains the top shareholder, was given in a statement to the Singapore Exchange on March 21. The move was effective on March 20, the same day that S&P Global Ratings cut Noble’s credit grade to a level signifying default after it failed to pay a bond.

“For investors, this could resemble a captain- abandoning-ship scenario” that hurts confidence, according to Jingyi Pan, a market strategist at IG Asia. The bigger issue remains the survival of the company, and the more immediate concerns about the debt restructuring, Pan says in an email.

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