Embattled Noble Group on Monday said it would sell its U.S. oil-liquids business to Vitol Group for about $580 million, as commodity trader tries to reduce debt.
Singapore-listed Noble's shares fell as much as 4 percent to S$0.365 after the lifting of trading halt on Monday. The trader's shares have sunk 78 percent this year amid concerns that the company will default.
Noble said the gross consideration of the sale would be $1.4 billion and after deducting indebtedness of about $836 million, the cash proceeds would be about $580 million.
"The net proceeds will unlock capital from Noble Group's balance sheet and generate significant liquidity," the company said, adding that trading conditions remained challenging.
"It is expected that the net proceeds will be made available to reduce Noble Group's indebtedness."
The deal is the latest in a string of disposals as Hong Kong-based Noble tries to meet obligations. In July it agreed to sell its smaller North American gas and power business to Mercuria.
In a separate statement, Noble Group said it expected a total net loss of $1.1 billion and $1.25 billion for the three months to September, and that lenders had agreed to a two-month extension of a waiver related to a revolving-credit facility.
