SINGAPORE — The embattled Noble Group faced a bevy of financial woes this week including default on $394 million in bonds, a lawsuit from a top shareholder and the resignation of its founder and chairman emeritus Richard Elman.
The company also temporarily halted trading of its shares March 22 on the Singapore Exchange.
Noble, one of Asia’s largest commodity traders, is in the process of seeking a $3.4 billion debt restructuring.
The deal has been opposed by some bondholders and shareholders, including Goldilocks Investment Co., which has an 8.1% interest in the company.
Goldilocks has filed a lawsuit against Noble and some of its former and current senior executives claiming they falsely inflated Noble’s assets.
Noble said it is consulting with its legal advisors and “intends to vigorously resist any and all allegations or claims made against it.”
Elman resigned as a non-executive director on March 20. He started the business in the 1980s supplying Chinese steelmakers, according to Bloomberg news agency. He turned it into a conglomerate operating throughout the world.
In 2015, Iceberg Research questioned Noble’s financial statements. Since then, the company’s market value has fallen from $6 billion to $114 million amid record losses and shrinking of its businesses.