Shareholders in Noble Group will be almost wiped out under the terms of a debt restructuring announced on Monday by the crisis-hit commodity trader.
The Singapore-listed company said existing shareholders, including its founder Richard Elman, and CIC, Chinas sovereign wealth fund, would end up with a 10 per cent stake if the deal is approved.
Under the debt-for-equity swap, which is backed by creditors who control 30 per cent of Nobles debt, its borrowings will fall from $3.4bn to $1.7bn.
That will leave its lenders with a 70 per cent stake in Noble, shareholders will get 10 per cent while 20 per cent has been set aside in order to incentivise …
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