Noble Not Paying Is ISDA Next?

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.

 

1820796 / Pixabay

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.

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