UPDATE: Noble: Yancoal Australia intends to object to restructuring

Singapore five-dollar note Photo by Leslie Shaffer

Noble Group said on Wednesday that it was notified Yancoal Australia and some of its affiliates intended to object to the Singapore company’s restructuring.

Yancoal intends to seek leave to object to the constitution of classes and schemes and to challenge the jurisdiction of the English courts, Noble said in a filing to SGX before the market open on Wednesday. “The company’s advisors note that objections of the nature raised by Yancoal are not uncommon in complex international restructurings,” Noble said.

In a statement emailed to Shenton Wire, Yancoal Australia said, “Yancoal confirms it has concerns regarding Noble’s proposed schemes  of arrangement and is considering a submission to the convening hearing to address these matters.”

“The board continues to strongly believe that the restructuring is in the best interest of all stakeholders,” it added, pointing to the 99 percent of shareholders who voted in favor of it at a special general meeting in late August and the approval of 88 percent of eligible creditors.

Noble’s relationship with Yancoal has been testy in recent months, with the Singapore-listed company filing suit against the Australian coal producer in August for alleged breaches of its marketing-services contract. Noble owns around 0.3 percent of Yancoal Australia after a capital raising in 2017 diluted its stake from around 13 percent.

Noble has applied to the High Court of Justice of England and Wales for permission to convene its English scheme meeting at the English scheme convention hearing to be held on 12 October, the statement said.

It has also applied to the Supreme Court of Bermuda for permission to convene the Bermuda scheme meeting at the Bermuda scheme convention hearing to be held on 15 October, it said.

This article was originally published on Wednesday 10 October 2018 at 9:14 A.M. SGT; it has since been updated with Yancoal Australia’s statement. 

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