https://www.engineeringnews.co.za

Noble Group sues Australian coal producers for alleged breaches

3rd August 2018

By: Bloomberg

  

Font size: - +

SINGAPORE – Noble Group, the commodity trader seeking to push through a restructuring after losing billions of dollars and defaulting, has filed a claim in Australia against two coal producers for alleged breaches of contractual obligations under a marketing services agreement.

The Singapore-listed company, which will report another loss later this month, said a unit has filed the claim in the Supreme Court of New South Wales against Yancoal Australia and Gloucester Coal for damages estimated at at least $127-million, according to an exchange statement on Friday.

After being locked in a battle for survival for years, Noble Group has secured approval from most of its senior creditors for the restructuring, as well as from about a third of its existing shareholders. The company’s drawn-out crisis has prompted speculation that some of its suppliers make seek an opportunity to walk away from contracts, putting at risk Noble Group’s ability to provide raw materials to customers in Asia. The claim relates to a marketing-services agreement entered into in 2011, according to the statement.

“We’re taking the appropriate time to review the claim and it’s too early for us to provide any further comment at this time,” James Rickards, Yancoal’s GM of investor relations and corporate affairs, said by phone.

Noble Group remains a minor shareholder in Yancoal, according to Bloomberg data, after its holding was diluted. The valuation of that initial holding, as well as its treatment of long-term contracts, had drawn particular scrutiny from its most consistent foe, Iceberg Research, one of several companies to criticize the trader’s accounting. Noble Group consistently rejected the criticism.

Last week, Noble Group said it expects an overall net loss of $115-million to $140-million, driven mostly by restructuring expenses and finance costs for the quarter to June. Still, the trader also sees profit before interest, tax and restructuring costs of $35-million to $50-million in the period as operating income from supply chains covered expenses.

Edited by Bloomberg

Comments

Showroom

Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.071 0.139s - 156pq - 2rq
Subscribe Now