Authorities probing Noble for making false, misleading statements and flouting disclosure rules
An employee is reflected on the wall as she walks past a signage of Noble Resources, a Noble Group subsidiary, at their premises in Singapore.
SINGAPORE — Embattled commodity trader Noble Group is under investigations for making false and misleading statements and breaching disclosure requirements under the Securities and Futures Act (Cap. 289).
The firm’s wholly-owned subsidiary, Noble Resources International (NRI), is also suspected of not complying with accounting standards under Section 201 of the Companies Act, said the Commercial Affairs Department (CAD) of the Singapore Police Force, the Monetary Authority of Singapore and the Accounting and Corporate Regulatory Authority (Acra) in a joint press statement on Tuesday (Nov 20).
Following an “extensive review” of the financial statements of NRI between 2012 and 2016, Acra said it notified its board of suspected breaches of the Companies Act and required the directors to provide additional information as part of the ongoing investigation.
Both CAD and MAS have directed Noble and NRI to produce documents relating to the preparation of the Group’s financial statements, following a thorough review of other relevant information, including information referred to the authorities by the Singapore Exchange Regulation — the regulatory arm of the the Republic’s bourse operator — and other third parties.
The Singapore-listed firm suspended trading of its shares on Monday as the company seeks to transform into an Asia-focused coal-trading business following a US$3.5 billion (S$4.8 billion) debt restructuring deal.
Last week, it obtained the required approvals, including getting a go-ahead from the courts for its restructuring and payment to creditors, clearing the final hurdle to completing its controversial debt-for-equity swap.
Under the lifeline provided by creditors, Noble is halving its debt, in return giving 70 per cent ownership to the creditors, which consist mainly of hedge funds. The deal leaves existing equity holders with just 20 per cent ownership in the restructured firm.
Once Asia’s top commodities trader, the company has been left in shambles ever since Iceberg Research accused the company of accounting irregularities in 2015. This has sent its shares plummeting, with the company losing 99 per cent of its market value.
TODAY has reached out to Noble for comments on the probe by the authorities.
