SINGAPORE: Singapore-listed commodities trader Noble Group is being investigated for suspected false and misleading statements, as well as breaches of disclosure requirements under the Securities and Futures Act, said the Commercial Affairs Department (CAD) of the Singapore Police Force, the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA) on Tuesday (Nov 20).
In a joint statement, the authorities said that the group's wholly owned subsidiary, Noble Resources International (NRI), is also under investigation for potential non-compliance with accounting standards under the Companies Act.
AdvertisementACRA said it has notified NRI's board of directors about its findings of suspected breaches and has requested for more information from them as part of the ongoing investigation.
This follows an extensive review of NRI's financial statements for the financial years ended Dec 31, 2012 and Dec 31, 2016, according to the statement.
CAD and MAS have also directed Noble Group and NRI to produce documents relating to the preparation of Noble Group's financial statements, after a thorough review of other relevant information, which included that referred to the authorities by the Singapore Exchange Regulation and other third parties.
The announcement came a day after the shares in Noble Group, once Asia's top commodity trader, were suspended from trading amid the company's efforts to transform into an Asia-focused coal-trading business following a US$3.5 billion debt restructuring deal.
AdvertisementAdvertisementNoble said last week it had obtained the required approvals, including getting a go-ahead from courts for its restructuring and payment to creditors, clearing the final hurdle to completing its controversial debt-for-equity swap.
Under the lifeline provided by creditors, Noble was to halve its debt, in return giving 70 per cent ownership to the creditors, which are comprised mainly of hedge funds. The deal leaves existing equity holders with just 20 per cent in the restructured firm.
Sources familiar with the matter said that Noble was expected to name a new board by end-November, and shares in the company, which will be called Noble Group Holdings, were expected to list in December.
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