Noble Group slapped with investigation in Singapore as it tries to fend off collapse

Singaporean authorities have opened investigations into under-pressure commodity trader Noble Group as it prepares to finalise a restructuring deal to save it from the edge of collapse.

Since falling from grace three years ago when researchers questioned its accounting, the trader has taken big write-downs, cut hundreds of jobs, and sold billions of dollars in assets.

Shares on the Singapore exchange were suspended on Monday as Noble prepared to complete a $3.5bn restructuring deal.

Authorities said they are investigating suspected false and misleading statements and breaches in the company’s disclosure requirements.

They also believe the company may have failed to comply with Singaporean accounting standards.

The Commercial Affairs Department of Singapore's police, the Monetary Authority of Singapore and the Accounting and Corporate Regulatory Authority said they would jointly investigate the claims after examining Noble’s statements between 2012 and 2016.

In February 2015 Iceberg Research, a firm which exposes financial fraud, set a price target of 0.1 Singapore dollars, down from 1.21, calling Noble Group “a repeat of Enron”.

In the aftermath the bottom fell out of Noble’s 8.1bn Singapore dollar valuation. When the company presented quarterly net losses last Friday it was valued at a meagre 108m Singapore dollars.

Last week the company announced it had been given the go-ahead to pay off its debt using equity in the company.

Creditors will take over 70 per cent of the business, leaving existing shareholders with only 20 per cent of the stock.

Noble Group could not be reached for comment.