Hong Kong

In a related story, the Financial Times reported that struggling commodity trader Noble Group said it expects to find a buyer for its global oil business this month, as it continues to shrink its operations in a bid to stave off defaulting on its debts. Speaking at a special general meeting in Singapore, where the Hong Kong-based trader is listed, chairman Paul Brough told investors the sale should be agreed by the end of September.

The International Swaps and Derivatives Association (ISDA) said it will publish a statement on Wednesday addressing the widespread confusion around Noble Group’s credit-default swaps, which has pitted the world’s biggest investment banks against each other in a tussle over payouts on the credit derivatives, the Financial Times reported. While the debt-laden commodity trader has not formally defaulted on any debt, buyers of CDS linked to Noble claim that a recent extension to loan repayment terms amounted to a debt restructuring — which can also trigger payouts.

Noble Group Ltd.’s net debt surged by almost $1 billion over the first six months as trading losses and constrained access to funds heaped further pressure on the commodity trader as it battles for survival, Bloomberg News reported. Net debt expanded $945 million from the start of the year to $3.82 billion at the end of June, the Hong Kong-based company said in a statement on Thursday as it reported a $1.75 billion loss for the second quarter.

Chinese property tycoon Wang Jianlin has embarked on a big asset reshuffling within his empire to reduce the leverage of Dalian Wanda’s listed arm as regulators increase the pressure on acquisitive dealmakers to cut debt, the Financial Times reported. Hong Kong-listed Wanda Hotel Development announced late on Wednesday it would buy nearly $1.1bn of assets from Wanda’s theme park and hotel management units.

Hong Kongers are generally reluctant to relinquish control to Beijing. But a cash offer at a 31 per cent premium to Friday’s closing price convinced the family of the territory’s former chief executive, Tung Chee-Hwa, to sell its 68 per cent stake in Orient Overseas (OOIL) to a pair of Chinese shippers led by state owned Cosco, the Financial Times reported. Both parties hope others will like the $6.3bn valuation. Overcapacity and a slowdown in global trade have hit shipping margins in recent years. Both Cosco and Danish market leader Maersk lost money in the past two years.

Noble Group, the Hong-Kong based commodity trader, has asked lenders to waive a debt covenant tied to a $1.1bn credit line that matures next year while it continues work on a plan to recapitalise the business, the Financial Times reported. Noble wants the banks to set aside the condition on the borrowing facility given the risk that a measure of net debt to earnings before interest, tax, depreciation and amortisation could rise above an agreed limit this year, according to people with knowledge of the discussions.

The International Swaps and Derivatives Association (Isda) will meet on Thursday to decide whether an extension of one of Noble Group’s loan facilities will trigger a payout on credit-default swaps (CDS) linked to the struggling commodities trader, the Financial Times reported. The “general interest question” was submitted on Monday and the derivatives trade body accepted it for review by one of its determinations committees on Tuesday.

Just days after Noble Group Ltd. secured a $2 billion loan extension, some investors in the credit protection market are looking to get paid. The International Swaps & Derivatives Association has been asked to decide whether a four-month loan extension from the Hong Kong-based company’s banks constitutes a so-called restructuring credit event, Bloomberg News reported. An anonymous party filed a petition on Monday asking the determinations committee to consider the question, which could mean payouts for holders of credit-default swaps on almost $5 billion of company debt.

The International Swaps and Derivatives Association (Isda) will meet on Thursday to decide whether an extension of one of Noble Group’s loan facilities will trigger a payout on credit-default swaps (CDS) linked to the struggling commodities trader, the Financial Times reported. The “general interest question” was submitted on Monday and the derivatives trade body accepted it for review by one of its determinations committees on Tuesday.

Noble Group took another tumble on Wednesday following a report the company’s main banks are in last-ditch talks over whether to give the commodities trader more time to find a white knight investor or to force it into restructuring or liquidation. the Financial Times reported. The FT reported banks including HSBC, Société Générale, ABN Amro, Citigroup and ING have appointed legal advisers as they weigh extending a $2bn credit line to the Hong Kong-based, Singapore-listed company to allow it to continue its search for a major new investor.