The deal, which Noble says would allow it to continue operating, would hand the lion’s share of the company’s remaining value to creditors willing to participate in a new trade finance facility. That’ll include hedge funds from the so-called ad hoc group that’s underwriting the facility. What’s more, Noble’s management will receive an equity stake of as much as 20 per cent.
“It’s wholly unclear to me why unsecured creditors are giving this team the chance to vaporise their capital all over again,” said Alex Turnbull, Singapore-based managing partner at Keshik Capital. “How bad could this business be with new management? The current team could catch fire in a swimming pool.”
I do accept that it requires an allocation of some pain…
Read the full article at: https://www.smh.com.au/business/companies/commodity-trader-warns-survival-hangs-on-debt-deal-after-6-3b-loss-20180301-p4z2d3.html