CNP 0.00% 4.0¢ cnpr group

the other option for gr

  1. 69 Posts.
    If CBA has decided not to agree to a debt for equity swap for whatever reason...


    if GR has decided Centro can't continue with short term debt extensions...


    there is still one option that HC posters have not contemplated considering.

    That is, to revisit the continuing sales process. We know that offers have been received for many of the properties put up for sale, including the US$714m CAF portfolio.

    The reason these deals did not continue was not that there were no buyers, but that management agreed not to proceed at the offered prices. If you look at recent news articles you can see that negotiations for these properties are continuing.

    Looking through the MCS syndicates announcements on the Centro Web Site, you see many purchasers offering for all properties at low ball prices - but were still offering.

    There is a possibility, even slight, that management may raise enough cash to clear CBA from it's unsecured debt to allow the debt for equity swap to go ahead. It is likely the unsecured debt will be used as the debt for the equity swap.

    Also, a low sale may not affect other portfolio valuations to a great extent if they are shown to be made under stressed selling.

    The rabbit may still be pulled from the hat...
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