The market has been revealed that Noble owed $58M to its ex-CEO. Additionally, the compensation liability of some Noble Traders (100-150M$ of phantom shares, cash or a combination of both) raises some issues.
The delicate question is how the 2 or 3 traders can monetize their bonus ?
On Dec 31th 2016, the coal and gas PnL is up by about $500M with no reason, simultaneously the MTM on Commodity Contract was up by $500M ?!
We expressed reservations about the uncertainty surrounding the outcome of Noble’s Financials as well as the risk that financial losses will continue.
Negative CFO -900M for Q4 tells a different story than their P\L that we can only tell.
From several journalistic sources.
Noble has intimidated the medias, the Media then become afraid to publish negative things about Noble-the same way it has bullied banks, analysts credit ratings and others.
Behind the Scenes
- Bloomberg New’s top guy (based in NY) had a meeting with Noble after they complained.
- They did the same with the highly respected FT.
- And with Platts in London, UK.
- The strategy was highly risky and has shown the obvious character flaws of the organization.
- It has backfired on them. Some took it very badly.
Noble Group has lost the real war
They have focused on an image campaign rather than the “bread and butter” that matters for suppliers, investors and credit agencies.
They have lost nearly $3B in FCFs since 2 years and half doing absolutely everything wrong from a financial, human resources & trading point of view.