Noble secures another extension on credit facility

SINGAPORE: North American lenders to Singapore-listed Noble Group have again extended the deadline for a US$2 billion (RM8.36 billion) credit facility, this time by three months to January 15, said the commodity trader.

The heavily indebted company, once Asia’s commodity trading powerhouse, has seen its fortunes fade in the last two years due to a drop in commodity prices and allegations about its accounting practices, which it has repeatedly denied.

The company has been slashing jobs and its selling assets to cut debt after a crisis-wracked two years.

It was granted a first extension on the credit facility in June, and said earlier this week that it was in discussions with banks to roll that over, while also taking steps to tackle its debt problem.

Noble, which has got waivers from other banks on loan covenants in the last few months, has debt due in the next year as well.

The company is in the process of selling its North American gas and power business and expects to announce a deal for its oil liquids unit by the end of this month.

Noble said the credit facility extension would help in the ongoing sales process.

“This extension will facilitate the ongoing sale process for the group’s global oil liquids business,” said Noble. Agencies