Struggling commodities trader and bulker owner Noble Group needs huge debt relief, according to debt brokerage Southey Capital.

Southey said the Hong Kong group, listed in Singapore, is reported to be moving closer to a debt-for-equity restructuring.

"We have been bearish on the name for more than two years, and our feeling is that a circa 70% debt haircut is the only long term feasible route out of the malaise of its over-indebtedness," it added.