Muddy Waters sees only one way out of the morass for Noble
Noble ‘almost certainly’ has to restructure if it is to survive as S&P flag the risk of the group defaulting, spurring a rout in its bonds and shares
Singapore — Noble Group will almost certainly have to undergo restructuring as the commodity trader battles for survival, according to Muddy Waters Research founder Carson Block, who has shorted the company before but says right now he doesn’t have bets against it. "They’re going to have a hard time escaping restructuring," Block said in an interview on Bloomberg Television, adding that in his view the company had less-than-zero book value. "We’re not shorted now — it’s hard to borrow, it’s expensive — and [we’re] just [trying to] understand exactly when its last wheel will fall off." The crisis at Noble stretches back more than two years as the Hong Kong-based trader has grappled with losses, credit-rating downgrades and asset sales, as well as attacks from short-sellers, including Muddy Waters. This week, S&P Global Ratings flagged the risk of a default within a year, spurring a rout in its bonds and shares. The company’s co-heads told staff in a memo they were facing an "incredib...
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