Embattled commodities trader Noble Group Ltd. is facing a potential default should it fail to reach a debt restructuring agreement or an extension for its US$1.1 billion revolving credit facility by Dec. 20, Bloomberg News reported Dec. 7.
In October, the company extended the repayment waiver on the facility to Dec. 20.
The company held talks with lenders in Hong Kong and London over the last two weeks to allow creditors to carry out further due diligence on the sustainability of its operations, people familiar with the matter told the newswire.
If Noble's revolving credit facility lenders do not extend the covenant waiver, it will be a technical default on the facility and could trigger a cross-default on bonds, said Annisa Lee, the head of Asia ex-Japan flow credit analysis at Nomura International.
"If that happens, Noble faces the possibility of going into liquidation, or a debt restructuring, depending on what creditors decide," Lee said.
Noble is set to seek shareholder backing Dec. 15 in Singapore for its planned sale of its Americas-focused oil liquids business, Noble Americas Corp., including the stakes in Noble Petro Inc. to rival Vitol US Holding Co.
An already deferred coupon payment for Noble's US$400 million perpetual securities is also due Dec. 24, Bloomberg added, citing its own data.
Another US$39.7 million interest payment on its US$1.18 billion bonds due 2020 is due Jan. 29, according to Bloomberg calculations, while another bond is maturing March 20, 2018, and will involve a payment of US$379 million of securities.