>Update (from smh.com.au): Since I published this article based on weekend media reports, Centro announced it had won a seven-month extension on its debt to December 15. series of US asset sales is also underway, with the Centro America Fund tipped to be first in line.In a statement to the market this morning, Centro’s directors confirmed that the extension to the $2.8 billion in debt includes $2.3 billion owed to Australian banks and $450 million owed to US private noteholders. Thanks to Sasha (see post comment) for alerting me to this update.
Centro Properties Group’s (CNP) looks to have run out of options and may need to declare bankruptcy after the shopping centre owner’s bankers failed to agree on the terms of a proposed extension to a $2.3 billion debt facility. This was despite reassurances from the company last week that it would be able to secure the required funding extension.
Centro yesterday declined to comment on its discussions with the Australian-based lending group. “There will be an announcement [this] morning,” was all its spokesman, Jim Kelly, would say. The stock is in a trading halt since last week and until this issue is resolved it will probably stay in a halt. For current stock holders the picture looks pretty grim.
The only thing that may get Centro a reprieve is if it can sell some asset quickly to appease its creditors. The company owns 800 centres in the US and Australia. On top of the $2.3 billion debt facility, Centro needs to extend the expiry of $US450 million ($471 million) of US bonds.
Centro (CNP) Update
Update on Centro (CNP) – Up 60% since my review 2 weeks ago
Article data from the smh.com.au
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