Noble Group’s shipping operations are expected to continue uninterrupted despite the company seeking Chapter 15 protection in the US while it pushes through a deal to restructure debt of $3.5bn.
The Singapore-listed commodities trader filed legal papers on Monday with the Southern District of New York aimed at providing a shield for its assets during the reorganisation.
Sources closely connected to Noble Chartering, the group’s Singapore-based shipping arm, told TradeWinds this week that the Chapter 15 filing has not affected day-to-day operations and it continues to fix ships and pay daily hire.
“Noble is going to great lengths to reassure charterers, vessel owners and brokers that it is business as usual and that all vessel commitments will be honoured,” a Singapore chartering broker said.
Noble is going to great lengths to reassure charters, vessel owners and brokers that it is business as usual and that all vessel commitments will be honoured
No charter impact
Shipowners that have vessels on charter to Noble Group said they were also told the Chapter 15 filing would have no impact on current charter agreements.
Noble has been looking to restructure after bond debt fell into default, and it has sold some of its dry cargo fleet in the past year.
Under the restructuring plan before the New York court, nearly all of the company’s assets, including its ships, will be transferred to Noble Group Holdings, which is being called the New Noble in the documentation.
Scheme creditors are being offered new bonds as well as fresh equity in the new vehicle.
At the same time, $800m in new debt has been lined up: a $600m loan from ING and Deutsche Bank; a $100m support facility from Deutsche Bank; and $100m from Value Partners and Pinpoint Asset Management.
Noble shareholders are being offered 20% of the paid-up capital in the New Noble and 10% of the special-purpose vehicle in which management will be allocated stock, court documents show.
