atans1

Noble House, noble debts, ignoble end

In Commodities, Energy on 24/05/2017 at 4:22 am

Or dear, so Noble’s fell another third and the shares were suspended on Tuesday after S&P lowered its rating by three grades to triple C plus on Monday. The rating remains on a negative outlook.

Well things got even cheaper ,“Noble trades at less than a third of book value and its bonds below half their par value.”, if auditors can be trusted.

It needs to roll over US2bn in credit facilities by the end of May. And next yr, it has another US$1.5bn to refinance: US$700m in cash and US$400m of unused credit lines and some of this is  now collateral for hedges.

But how to refinance when there’s a lack of hard assets that can serve as collateral and when it’s difficult to independently value its portfolio of contracts to source and supply commodities?

Time to call in the knackers? After all  Paul Brough, a former partner at accounting firm KPMG,  is now the chairman and has started a “strategic review”.

  1. Maybe plonk in few hundreds for fun if prices go down another -60%.

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