Noble Group Suffers $5bn Loss

    By gren (Self-published work by gren) [Public domain], via Wikimedia Commons

    Noble Group, a commodities trader, has reported a loss of almost $5bn (£3.6bn) for last year in what some analysts have said is probably the hugest loss that was made by a company that is listed in Singapore.

    The company aid that it will concentrate on a debt restructuring after the firm plunged to a loss of $4.9bn for last year as compared with a profit of $8.7m in 2016 because of a hit from non-cash losses on the company’s derivatives contracts.

    Noble said that the loss produced a negative net asset position for the group. However, they also said that “the board believes that the proposed restructuring, once implemented, should restore shareholders’ equity and create a sustainable capital structure which will allow the group to rebuild its business in Asia where it continues to enjoy a market leading position.”

    Noble added that the board of the company is “satisfied that the group can continue as a going concern” up until the restructuring is completed.

    The $3.4bn debt-for-equity plan of Noble is hoped to generate a sustainable capital structure for the troubled trader.