Noble Group’s Debt Reduction Measure, Plans to Sell Four Ships


Commodity trader Noble Group Ltd said on Wednesday that it would sell four Kamsarmax dry bulk carrier vessels for about USD 95 million, as it looks to cut debt to keep its business running.

Net proceeds from the disposal, following repayment of bank loans associated with the ships and other costs, will amount to about USD 30 million, the company said in a statement.

Noble, today is an Asian-centric company focused largely on coal and freight trading, after a crisis-wracked two years that have forced it to slash jobs and sell assets.

“The consideration was arrived at after arm’s length negotiations between NGL and the buyers, on a ‘willing buyer willing seller’ basis, and taking into account, inter alia, the valuation of the vessels and the vessels’ specifications and age,” Noble Group said.

The vessels in question are 2014-built Ocean Ambition, 2015-built Ocean Forte,  2015-built Ocean Integrity and 2015-built Ocean Vision, all registered under the flag of Hong Kong. They have an average age of three years and range from 81,499 dwt to 81,616 dwt in capacity.

Earlier this month, the company said that it had started talks with stakeholders to restructure its debt and secure trade finances. Noble’s market value has plummeted more than 90 per cent this year to about S$195 million (USD 145 million).

The sale of the vessels was expected to close next year between March 10 and May 31 and would not significantly impact the operations of the freight business, the company said.

Sea News, November 30

Baibhav Mishra
Author: Baibhav Mishra

Associate Editor, Sea News