Tag Archives: crooks and liars

NOBLE Paper for Paper Plan 2

Those who take risks must be exposed to the losses that come from them. The restructure of Noble is an infringement of this principle.

 

  • If the company (that they bankrupted) ‘goes into liquidation’, the management pocketed fees, going away with millions in salaries & bonuses.
  • If the company does not go in liquidation, the failed management and its failed VPs also end up winning a ~15% stake in the reformed entity, are absolved from criminal prosecutions perpetuating the siphoning with the next-to-become-losers…
  • Noble’s 6% Perpetual securities with a principal amount of $400m will be reduced to $25M (a 93,75% haircut) .

The new notes allow Noble to trigger its Perennial Default.

  • “Concurrent with the restructuring, the Existing Perpetual Capital Securities holders will be offered the opportunity to voluntarily exchange the Existing Perpetual Capital Securities into a new US$25 million 2.5% non-accumulative pay-if-you-can perpetual capital security instrument issued by New Noble (“New Perpetual Capital Securities”)

(“New Perpetual Capital Securities”) Non-accumulative ? PIK, pay-if-you-can ?

Current shareholders will get a 10% of the ‘New Noble’ (90% dilution)

http://infopub.sgx.com/FileOpen/New%20No…eID=492729

 

More importantly what is the standard of probity of Noble and its Financial Advisors PTJ Partners, Comprador, Moelis ?

As of Q1-2017, Noble Group (來寶集團) had a frothy $3,4B of marked-to-market fair-value gains on derivatives and commodity contracts.

As we theorized, Noble’s operating loss was created by the mismatch between the level of profits booked on these derivatives and commodity contracts and their underlying expected cash-flows, the real nature of this MtM could be viewed as an expensive liability that Noble (來寶集團) had to carry.

The backbone of Noble Group’s net equity represented future gains (P/L) on commodity contracts, comprising more than 102% of Noble Group’s equity, e.g what Noble Group was margining to get trade loans.

Did Noble even validated how they marked their curves, like against the brokers curves Ginga, Tradition, Sunguard ? Else how did they justified their MtM P/L ?

Noble said yes, but thecnically, no independant third-party has been able to verify the gains on the contracts.

In fact even PwC gave an assurance review, but hasn’t worked directly with the contract, Noble arguing the terms were “highly confidential” and disclosing would hurt its competitvity.

It’s on what Noble borrowed from the Banks HSBC, ING and Deutsche Bank.

Not only this FV on G/L was improperly valued, Noble had also to fund the “ to-arrive equity”.

Predictably it’s what they did.

First they did a ‘discounted’ $500m rights issue, which was said ‘necessary’ to deal with what Noble called a “liquidity crunch” after then creditors and banks reduced their lines.

Then came a $750m 8.750% bond issue sold to the public in March of this year to support the “Fair-value-to-arrive equity”.

Most of Noble (if not all) tangible assets and offtakes have also been sold below the reported BV … and Noble Group, despite all its backstops, has been forced to realize a loss of nearly $4.99B for 2017.

Now finally they had to restructure ?

They are switching entities, leaving current bagholders with claims on an empty shell.

Noble group floats that post restructuring “New Noble” could be listed on the SGX, a wrong, highly uncertain and legally-challenged assertion.

Noble believes the proposed financial restructuring also sets a firm foundation in creating options for future strategic alliances.

What kind of clients or investors will want to seal business deals or only be associated with these characters in the future ?

The Noble Files 贵族档案

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Noble Americas Corp failed and it’s wonderful

Noble Americas Corp failed and it’s wonderful because we like to see awfully bad people fail.

For the records they were given a blank card and what they did with it was roulette “double the stakes or quit” losing million dollars in negative cash flows per day* depending on how you read  Noble’s torture of its operating income from supply chain and  non-cash mark-to-market unrealised observable positions or its (bogusphysical turnover.

STAMFORD — Commodities trader Noble Group, which has offices at 107 Elm St. in Stamford, Conn., plans to lay off 84 Stamford-based employees by Dec. 31, 2017.

The layoff notice was received last Friday by the state Department of Labor. Affected positions at Noble Americas Corp.’s downtown offices, at 107 Elm St., include accountants, analysts, managers, senior vice presidents and traders. The cuts are scheduled to be made by Dec. 31.

If you want to know the real story of Noble Group, it is pretty simple :  in trading A 3rd or a 2nd won’t make it. It’s not enough. Vitol doesn’t re-hire thirds-traders or failed VPs. (Got to get everything right and 10/10), or the market will grind you down to the ground, it will.

Noble Americas Corp failed and it’s wonderful.

Merry Christmas.

the Noble Files 高贵组文件 研究

The burden of Karma is heavy as Noble crosses the gates of death.

Noble Group has the symptoms of schizophrenia. Their delusion and demise were never “their” fault or caused by the actions of “their” traders.

Caught in-between and dancing on losses, the high rollers have painted it as because of : “liquidity constraint impacting trading and earnings generation”. For Noble Group “the problem” must be the exact solution, they have punted for working capital everywhere from the MD&A to the Press/Investor Communication and Strategic Review…

The financial statements* for the six months ending on 30 June 2017 eloquently sums up the financial substance of Noble Group:

  • Noble presents itself as a  $2B net equity company with an $1,45 MtM unaudited Gains on Derivatives company*
  • The trader has -$763 million negative OCF with a net debt increased by nearly $1B to $3.81B.

* unaudited.

The Energy Segment accounts for 90% of Noble Revenues in 1H-2017.

Noble Group Business

Noble Group Limited Revenues by Segment, 1H-2017

The Energy Segment traded at a loss of $226 million during 1H-2017 (excluding financing costs and salaries).

That’s more than -$1.25 million per business day… Monday to Friday but the business is run smoothly. Of course no.

But in the world of Noble shortlisters rush on a “bargain” 🙂

.

“Sale of Global Oil Liquids Sales process commenced with shortlist of bidders–bids expected in Q3 2017”

-Strategic Review Update–26 July 2017

Noble nasty.png

 

Investor Presentation Q2-2017 P.6

Out of Control

The Non-Performance of Global Oil Liquids should not be that shocking knowing the “Book now, think later” at the company. It lacks the management to impart performance.

Noble had two or three large take-of-pay deals in the U.S but the wind has changed as it always does in the physical energy markets.

The burden of Karma is heavy as Noble crosses the gates of death:

The hostile work environment includes daily vulgar and disgusting comments from male employees about vaginas, sex, male genitalia, and verbally abusive language using the word ‘f—‘ explicitly. constant abuse.”*

During 2012-2016, at the office in Stamford, Plaintiff’s seat was next to the gasoline traders which includes video conference cameras connecting with London and Houston offices.

The commentary back and forth on the Stamford desk for everybody within earshot to hear, frequently became vulgar and disgusting. This created a hostile work environment.

*Ramos V Noble Americas Corporation.

It is the last tango act of an unprincipled trader-assaillant.

Noble did the financial engineering for years and years and then the showgame broke. The typical assumption of a 40% recovery rate may indeed be too optimistic.

PwC has signed Noble’s Financial Statements but performance has inevitably caught up the accounting gimmicks.

Noble Group has generated negative cash-flows from the operations to the tune of

-$1600M in 2014
-$600M in 2015
-$900M in 2016,
-330M for Q-1 2017

and -433M for Q2-2017

A Toxic Legacy

Net fair value gains now stands at $1.455 billion as of end-Jun 17. 

fairtoarrive net equity of $2B* is still rather delusional for a company not producing any plus-value -Noble is losing operating cashflows at a rate between -3.5 and -$6.5M per business day in the recent quarters.

*unaudited financial statements.

Noble’s position is irreparably compromised. 

Noble group has no intrinsic value (by Discounted Cash-Flows).

The firm offers no viable future for patient capital.

Their leverage futures-physical trading model has too much impediments to break-even.


The Noble Files 贵族档案

 

The War on Women

You would think that the most educated people are the most “Noble”.

These 56 pages are a Gold mine of abuse.

Wendy Ramos is head of chartering in the well-known Stamford trading outfit.

She is referred as the oldest employee. The lawsuit states that Ramos was treated differently than at least five male counterparts in terms of pay, bonus and renumeration.

The hostile work environment includes daily vulgar and disgusting comments from male employees about vaginas, sex, male genitalia, and verbally abusive language using the word ‘f—‘ explicitly. constant abuse.”

A Day on the trade floor.

During 2012-2016, at the office in Stamford, Plaintiff’s seat was next to the gasoline traders which includes video conference cameras connecting with London and Houston offices.

The commentary back and forth on the Stamford desk for everybody within
earshot to hear, frequently became vulgar and disgusting. This created a hostile work environment.

It was a constant back and forth across the Stamford desk of sexual innuendo and inappropriate commentary.

For example, on October 1, 2015, there was a discussion around the smell of fish and a women’s body that was extensive.

This happened on the trading floor in an open space. Sushant [Sushant Koduru] left sushi on EL’s (a female employee) desk. EL said to Sushant and the other men that she didn’t want the sushi.

In response, Sudeep  says to Dmitri [head gasoline trader], “EL is offering out her sushi to everyone,” with intonation of a sexual nature regarding her vagina.

EL encourages the behavior an repliesand laughs, “Who wants my fish? Everyone wants my fish!”

The men around me were giggling among themselves.

Then EL comments, “It’s very fresh!” To which Sushant smiled and replied, “I’m sure! Koto Approved.” 🙂

HR Policy “D cups”

On or about, 2015, Plaintiff was told that Jeff Frase (CEO) and

Mike Kerrigan-Human Resources had a meeting whereby they were discussing restructuring (firing) staff.

Plaintiff was told that Jeff said that they had to keep Blair Shrewsbury, a young intern, because she was the only “D” cups on the floor, whereby Jeff and many others laughed about it, including the HR executive.

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Incompetence & Arrogance

The Lawsuit alleged that James McNichol  and his team lost Noble well over 85 million dollars in the year he left Noble’s employment.

James McNichol came to Noble from Trafigura where he had been accused of being the trader behind a deal that unlawfully disposed of oil waste slops in Nigeria that ultimately caused serious illness of multiple people who came in contact with the disposed slops.

Plaintiff’s first experience with James was during a “Team Building” meeting held in

Barcelona Spain during October 9 11, 2009. Plaintiff was asked to attend and give apresentation relating to the Chartering desk. It was clear from the start of meeting that James had his own agenda for the Oil Group.

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Managing the company money.

The entire trading team at the time was in Barcelona where on the first night Plaintiff went to dinner with the group and then to an early night in.

The next day during the Team Building presentations several men were missing. As they showed up in the afternoon hours of the day, the rumor was that the men were not present because they were hung over. As the day progressed, it was said through conversations that these men were out all night at a strip club. After the event, James submitted the “expense” to Ted for reimbursement.

If you run into trouble, just tell a lie to the customer.

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On or about, 2009, on information and belief, James McNichol told the London operations manager, Zelda Harina, that she needed to convince the inspectors to lie about quality outcomes on cargoes.

James wanted her to do this to make more money. She refused to urge the inspectors to lie and she ultimately quit because she would not do what he asked.

During this time at Noble, on information and belief, James proceeded to make questionable trading decisions that were losing the Oil desk millions of dollars.

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 Book now… think later

For example, he took on overpriced storage, taking on multiple time charterer ships for Gas and Diesel without consent from Ted.

The spreadsheet below that shows that Noble at that time had taken approximately 670,000 MT for floating storage versus Vitol (the largest trader in theworld) was 2nd with 300,000 MT than the total trading market.

mogas on water

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Plaintiff sent this spreadsheet to Ted and asked him to do something about James’ injurious actions.

Not only was he hostile to her, now his behaviors were damaging to the company’s bottom line.

However, nothing was done.

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At the end, the unsold cargoes, and empty storage finally caught up to the oil traders, and ultimately James and his team lost Noble well over 85 million dollars in the year he left Noble’s employment.

Can you understand why Noble Group is in a liquidating death spiral ?

Can you understand better Noble Group will soon cease to exist, evidently somebody messed-up big time.

The Noble Files 高贵组文件 研究