The author of this article has a short position in Noble Group
Noble is on track to not repay its first bond payment. We know now that it doesn’t intend to repay the $375 million bond due this tuesday.
So why does Noble simply doesn’t pay ?
Noble says it would be for the benefits of all its shareholders.
What benefits ? getting 1/10 of the ‘new-noble’.
What happens next if Noble defaults ? Legal procedures will start.
Inversely the trustees need only 1/4 of the bondholders support to liquidate Noble Group.
S&P Global Ratings cut Noble’s credit score to D, a level signifying default after it the Singapore trader refused to pay principal and interest payments on its U.S dollar notes.
- Noble says it will not make payments despite being granted a 30-days grace period.
The ISDA must now get its act together.
