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Noble shares gain some ground after credit facility extended

Reuters  |  SINGAPORE 

(Reuters) - in Singapore-listed commodity trader Group had some respite on Monday, climbing 9 percent after a source familiar with the matter said its creditors have agreed to push back a key repayment deadline by four months.

Battered by concerns over its financial strength in recent weeks, the firm has been in negotiations with banks over a $2 billion facility, which is due to be rolled over by the end of this week.

The expiry of the line has been extended until October, the source said on Friday. In exchange, creditors have asked to find a strategic investor.

declined to comment.

But the outlook for the firm remains grim.

The value of its has been almost wiped out, collapsing from a 2011 peak on accusations of murky accounting and hit with the impact of a broad commodity downturn. The company has stood by its accounts.

Financial woes have worsened this year after posted surprise quarterly loss that was followed by warnings from ratings agencies about its ability to service debt.

rose 9.2 percent to S$0.35 in thin morning trade.

Its 2022s bonds are trading half a point lower at 37/39 cents on the dollar, while its default swaps are implying a high default probability of 94 percent.

"While it is certainly a positive sounding headline, I am not sure it is the grand type of event that will arrest the negative momentum afflicting the company," said Todd Schubert, head of fixed income research at Bank of

"First, it is only four months and gives the company limited breathing room. Also, we do not know either the pricing/terms of the extension."

(Reporting by Miyoung Kim in and Umesh Desai in Hong Kong; Editing by Edwina Gibbs)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)