Noble Group Ltd. is racing against time to garner enough votes for a debt restructuring plan after its decision not to pay a USD 379 million bond due Tuesday sets it on course for its first note default.
The failure to make payment will prompt an "event of default" under the terms of its bond documents. The company has opted for non-payment to preserve assets "for the benefit of all stakeholders during the implementation of the proposed restructuring," it said in a filing Friday. The move will likely trigger payouts on credit default swap contracts tied to Noble and cross defaults on its other debts too, according to law firm Eversheds Sutherland.
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