I’ve been taking a keen interest in the once Noble House because I tot it might look interesting post restructuring even if it would have a very high debt burden after swapping debt for equity.
Well its warning of bigger losses (now confirmed*) put paid to my interest because the latest losses were coming from coal trading the business it was going to focus on post restructuring, and which was the basis of it being nubbed “Noble House”
I’ll let the FT do the talking:
One of Noble Group’s biggest shareholders has said senior management has yet to show it can turn round the commodity trader after it reported a $5bn annual loss, one of the largest ever in Singapore.
Goldilocks Investment, which took an 8.1 per cent stake in the crisis-hit company last year, said the fact the core business of coal trading continued to lose “millions every month” raised doubts about a rescue plan involving a massive debt-for-equity swap.
*https://www.reuters.com/article/us-noble-grp-results/noble-group-plunges-to-4-9-billion-loss-in-talks-to-wrap-up-debt-deal-idUSKCN1GC172
