SINGAPORE (Dec 11): Noble Group plans to apply for a court-ordered administration in Bermuda on Dec 14 to complete the restructuring of the company into New Noble.
See: Singapore authorities block New Noble listing
See: Singapore authorities block Noble Group's plans to transfer listing to New Noble on restructuring
Noble’s board says that such a course of action is "the only means available to it" to implement restructuring that is in the interests of all stakeholders of the company.
In the event that the company is unable for any reason to complete the restructuring in accordance with this approach, Noble says it would be forced to enter into a full liquidation process.
“This will result in no recovery for shareholders and holders of the company’s perpetual capital securities, and also materially lesser recoveries for creditors,” says Noble in a filing with the Singapore Exchange on Tuesday.
Noble says the approach is intended to preserve the underlying business and operations for the benefit of its stakeholders. As a result of the restructuring, existing shareholders of the company would still have a total of 20% of shares in New Noble allocated to them under the current restructuring plan even though Singapore regulators have not permitted for Noble's listing status to be transferred to New Noble.
"The board remains of the strong view that the restructuring is in the best interests of all of the company’s stakeholders, including its creditors and shareholders, and has taken steps so that the restructuring may be implemented save for the transfer of the listing," Noble says.
Subject to the order being made by the Bermuda court on Dec 14, the restructuring will start on Dec 18 and the perpetual capital securities exchange will be implemented as planned.
In order to allow further time to complete the restructuring, Noble has agreed an extension of the long-stop date under each of the English scheme and the Bermuda scheme from Dec 11 to 8.59am (London time) on Dec 31 with the consent of the Ad Hoc Group and Deutsche Bank.