Commodities trader Noble Group's shareholders backed a $3.5 billion restructuring deal on Monday, in a major boost for the embattled company's efforts to stay afloat.

The deal is aimed at pulling the company back from the abyss of a three-year crisis sparked by a fall in commodity prices, allegations of irregular accounting practices and a ratings downgrade.

Once one of the world's top commodity trading houses, Noble has been reduced to a shell of its former self as the company sold off assets while battling creditors and shareholders in a bid to survive.

Shareholders overwhelmingly backed the plan, which calls for 70 percent of the restructured company to be held by creditors, with 20 percent going to shareholders and 10 percent to management.

The vote went ahead after key investor Goldilocks Investment Co in June agreed to a revised restructuring plan that raised shareholders' equity in the company from 15 percent.

Abu Dhabi Financial Group, with which Goldilocks is affiliated, will also form a strategic partnership with Noble to explore opportunities in the Middle East.

"We are now moving into the final phase of the restructuring," Noble chairman Paul Brough told investors before the vote, according to Bloomberg News.

Noble, which is headquartered in Hong Kong and listed in Singapore, saw its market value plunge from $6.0 billion in February 2015 to just $114 million currently after being accused of inflating its assets through irregular accounting practices.

The allegations marked the start of the crisis that has engulfed the company.

Monday's deal still needs a formal endorsement by senior creditors -- which it is likely to get -- and approval from the courts but this could run into a roadblock as a legal challenge is planned, according to Bloomberg.

Noble however said it is aiming for completion of the deal by year-end, Bloomberg said.

Founded in 1986 by British businessman Richard Elman, Noble rode the crest of a rise in commodities prices to become one of the world's biggest commodity trading houses.

mba/sr/amu

NOBLE GROUP

Related Links
All About Oil and Gas News at OilGasDaily.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Norway signs off on new North Sea development
Washington (UPI) Aug 24, 2018
The Norwegian government announced Friday it signed off on a new Equinor project that boosts North Sea recoverable reserves by 62 million barrels. The Norwegian Petroleum Directorate, the nation's energy regulator, announced it granted approval for a September start date for production from the Oseberg H unmanned platform. Operated by Norwegian energy major Equinor, the regulator said planned investments in the facility were around $775 million. That's lower than the initial estimate by 20 perc ... read more