Noble Group flags Q2 loss, sells more businesses to cut debt

SINGAPORE, July 26 (Reuters) - Noble Group Ltd warned it would report a loss in its second quarter and said it had started a process to sell its global oil liquids business, as the embattled commodities trader seeks to cut debt.

Singapore-listed Noble also said it struck a deal to sell its U.S. gas and power business to Mercuria for $248 million.

These moves will "generate significant cash proceeds and allow the group to retire the US$2 billion Noble Americas Corp secured borrowing base revolving credit facility and the US$1 billion Noble Clean Fuels Limited secured borrowing base revolving credit facility," the company said in a statement on Wednesday.

Noble said it expected to report a loss in its second quarter and that it had seen significant challenges from markets and lenders and customers to manage and support its business after its first-quarter loss. It said negotiations with its lenders were continuing.

Noble's troubles started two years ago when its accounts were questioned by Iceberg Research, sparking a dramatic collapse in its share price and ratings agency downgrades, forcing a sale of its assets and a fund raising to allay financing worries in a brutal commodities market. Noble has stood by its accounts. (Reporting by Anshuman Daga; Editing by Muralikumar Anantharaman)