Shares in Noble Group jumped more than 7 per cent on Monday following reports the troubled commodities trader is close to being thrown a lifeline by its banks.
Its lenders are poised to give the Hong Kong-based company until October to sell assets or find a white knight investor to recapitalise the company, according to people briefed on the discussions, the Financial Times reported.
The company’s Singapore-listed shares were up 7.7 per cent, but had gained as much as 10.8 per cent during the morning session. Still, the share price is down 79.4 per cent so far this year.
Shares closed 8.3 per cent higher on Friday when rumours about the credit line repayment extension surfaced.
Noble has been hit by a downturn in commodity markets and then faced questions about its accounting. The company warned in May it may not be profitable until 2019 and investors have grown increasingly concerned about the company’s ability to service its debt load.