Indonesian coal producer slaps Noble with lawsuit
It is seeking a compensation of US$260m.
A bad week for Noble Group Limited just got worse as it said in an announcement that Indonesian coal producer PT Atlas Resources Tbk has filed a lawsuit and is seeking compensation of US$260m.
“As at the time of this announcement, the company has not been served with any writ relating to such claim and the company is not aware of the grounds for the claim or any further details relating to the same.”
Nonetheless, Noble said it intends to vigorously defend any claim if served. “A further announcement will be made as and when this matter develops,” it added.
Noble previously said that lawsuits that are filed and could be filed against the company are unlikely to succeed. It cited its restructuring support agreement (RSA), which 50% of its senior creditors have already signed, that stops the consignees from taking any “enforcement action” including making a sum payable on demand, pursuing legal action against the company, or petitioning, applying, or voting for any insolvency proceedings.
Moreover, the holders of the 2018 notes that have at least a 25% interest would still need to get the approval of the trustee to file charges against the company.
Before that, Noble received its first default notice for its $379m bond and got hit by top shareholder Goldilocks Investment’s lawsuit against the commodities trader. In a writ of summons obtained by Singapore Business Review, Goldilocks alleged the firm and some of its former and current senior executives of overvaluing assets. The shareholder is seeking relief, including US$169.44m based on the remuneration packages awarded between 2011 to 2017, and a declaration by the executives that they abandoned their fiduciary/equitable duties to Noble.
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