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Noble Group Ltd won approval on Monday from a majority of shareholders for a $3.5 billion debt restructuring plan that should ensure the survival of what was once Asia's biggest commodity trader.
Faced with the prospect of the company's insolvency, shareholders reluctantly backed a debt-for-equity swap that will leave them with ownership of just 20 percent of the business, while handing majority control to a group of creditors comprised mainly of hedge funds.
"Today, the decision to avoid liquidation rests in your hands," Noble Chairman Paul Brough told shareholders at a packed meeting before the voting began.
Small shareholders at the meeting told Reuters they were angry with Noble's management as the plan diluted their investment value, but added they saw no choice but to support the plan in order to save at least some of their investment.
Roger Ong, 49, a driver who has invested in Noble shares said he had no choice but to vote in favor of the plan.
"We want to keep the company afloat rather than liquidate it," he said.
More at https://tinyurI.com/y9m5nht2
Faced with the prospect of the company's insolvency, shareholders reluctantly backed a debt-for-equity swap that will leave them with ownership of just 20 percent of the business, while handing majority control to a group of creditors comprised mainly of hedge funds.
"Today, the decision to avoid liquidation rests in your hands," Noble Chairman Paul Brough told shareholders at a packed meeting before the voting began.
Small shareholders at the meeting told Reuters they were angry with Noble's management as the plan diluted their investment value, but added they saw no choice but to support the plan in order to save at least some of their investment.
Roger Ong, 49, a driver who has invested in Noble shares said he had no choice but to vote in favor of the plan.
"We want to keep the company afloat rather than liquidate it," he said.
More at https://tinyurI.com/y9m5nht2
