Hong Kong commodities company Noble Group completed its $3.5bn restructuring on Thursday, emerging as a smaller, unlisted company.
“The completion of the restructuring allows the company's business to move forward under its new holding company, Noble Group Holdings Ltd,” the company said in a statement to the Singapore Exchange (SGX).
Seventy percent of the shares of Noble Group Holdings will be held by a so-called special purpose vehicle representing its previous creditors, with 20% held by shareholders of the previous company and 10% by the management, the statement said.
Meanwhile, Paul Brough, has agreed to become the first chairman of New Noble until a suitable successor has been identified.
Brough, a restructuring veteran, had previously said he would step down once the restructuring was completed.
“Today’s announcement marks a significant milestone for the company. It has been a long, and at times difficult, journey,” he said in a statement.
“However, throughout this journey I kept my conviction in the company’s underlying business and people, both of whom have been unbelievably resilient.”
Brough said this was a “great testament” to Noble’s deep relationships with its customers and suppliers and its “very loyal employees”.
“It is now for New Noble to take the business forward under the experienced leadership of chief executive Will Randall and his team, who will now have a stable business platform and the financial resources necessary to realise the full potential of the business,” he added.
Joseph Swanson, senior managing director at Houlihan Lokey, the financial advisor to the company’s ad hoc group of creditors, commented: “The restructuring of the Noble Group is a landmark transaction in the region and a tremendous accomplishment for all those involved.
"Between the new $800m trade finance and hedging facilities and a substantial deleveraging of the balance sheet, New Noble is well positioned to play a leading role in the Asian hard commodities business."
