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Friday, November 24, 2017

OMG! Noble Group bankruptcy is getting real as its shares slump to its lowest price.

https://www.bloomberg.com/news/articles/2017-11-24/noble-group-shares-slump-as-company-transfers-stock-to-ex-staff

The share price slump will definitely make it extremely difficult for Noble to raise funds or secure more credit facilities from the banks.  There is no way Noble can survive without a financial restructure.

It's pretty obvious that the prognosis is very bleak.  Let's recap from our previous postings.

Noble has a high debt in which it has difficulty in servicing.

Noble is producing negative cash flows.

Noble top honchos have left.

Noble is selling its golden gooses and this will saddle Noble with income losing assets.

Noble has its credit standings downgraded by all the credit rating firms.

Noble has lost a big credit facility supporter (DBS).

Noble is losing billions in 2017.




2 comments:

Eric Ho said...

For your information, we do not have any position in Noble and don't intend to short Noble either. Therefore, we are not trying to talk down on this counter.

Eric Ho said...

http://www.businesstimes.com.sg/companies-markets/iceberg-claims-nobles-balance-sheet-still-cant-be-trusted