Noble Group’s shares roiled as investors zero in on debt talks

Bloomberg

Noble Group Ltd. shares extended their decline to the lowest level since 2000 amid rising investor concern that the embattled commodity trader may not be able to engineer a turnaround even as it presses on in talks
with core banks to try to secure more funding.
The stock tumbled as much as 11 percent to 28.5 Singapore cents and ended at 31.5 cents, capping the sixth drop in seven sessions. The shares have sunk 81 percent this year, cutting the group’s market value to S$414 million ($300 million). The company has about $2.1 billion of debt obligations due by the end of 2018, according to data compiled by Bloomberg. An external media spokesperson for Noble Group declined to comment.
The crisis at Noble Group has intensified this month ahead of a critical funding deadline, with a borrowing base facility due to expire. The company — which has been battling losses and ratings downgrades for more than two years — is asking lenders to extend the $2 billion facility until the end of the year, according to a person with knowledge of the discussions. If agreed, that would hand co-Chief Executive Officers Will Randall and Jeff Frase more time to sell additional assets or persuade a strategic investor to come on board.
“It’s all up to their ability to refinance this month,” Nicholas Teo, a trading strategist at KGI Securities Pte, said by phone, referring to the borrowing base facility. The stock could slump to 10 cents or even lower if the company can’t negotiate a deal for an extension, Teo said.