Noble Group's $5 Billion Estimated Loss Could Push Creditors to Accept Debt Deal

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A massive annual loss estimate by commodities trader Noble Group makes it more likely that creditors will back its $3.4 billion (2.4 billion pounds) debt-for-equity restructuring to ensure the company's survival, analysts said. Noble, which flagged an annual loss of up to $5 billion on Monday, announced an initial deal with creditors last month to halve its senior debt and give them 70 percent of the company, with existing equity holders diluted to 10 percent, the International New York Times reported on a Reuters story. "The losses were expected to clean the old Noble balance sheet once and for all. In doing so, the management makes endorsing the restructuring the only viable alternative for creditors," said Jean-Francois Lambert, a consultant and former global head of commodity trade finance at HSBC. Over the last three years, Noble - once a global commodity trader with ambitions to rival the likes of Glencore and Vitol - has cut hundreds of jobs, sold billions of dollars of assets, taken hefty writedowns and changed its CEOs and chairman. Read more. (Subscription required.)