atans1

More cracks in Noble Hse’s foundations

In China, Commodities, Corporate governance on 05/02/2016 at 3:23 pm

Look’s like the Yr of the Monkey (starting on Monday) is not going to be good for Noble. I had posted that Monkey, the trickster, could be gd news for the trader.

Two things just went wrong and the effects will be felt in the new year especially as it is trying to refinance almost US$2.2bn of debt bank with bankers concerned about more asset write-offs in the light of a US$300m write-off.

And these two events make it harder has to find a strategic investor to help srengthsn its balance sheet.

First, Nyrstar, the world’s largest producer of zinc, is ending its agreement to supply Noble Group one year early. This deals another a blow to the embattled commodities trader.

And S&P has downgraded fellow trader’s Glencore’s debt to one notch above junk. Noble followed Glencore into morphing from a trader to becoming a mining trader.

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