CNP - Centro Properties Group

[oldblue]

I doubt whether cash settlement in 3 weeks is the deadline. If lenders are secured, what they will be looking for is a firm commitment to sell to repay the loan(s). If they get that, its normally in their best interests to extend the loan temporarily, rather than to take action under their security and have the problem of disposing of the property themselves.
Of course, they may prefer to take possession if they think the property is worth more than the loan?

 

[vida]

Hi MINER

What does the Eureka report say about MFS? Is it something along the same lines as those reports on CNP? Would be very interested to know.

thanks

 

[Miner]

Hi MINER

What does the Eureka report say about MFS? Is it something along the same lines as those reports on CNP? Would be very interested to know.

thanks

Hi Vida
Until date I have not seen any posting on MFS from Eureka Report or Huntley's publications.
I will keep watching and will publish as soon as I see it.

Regards

 

[Bushman]

Ha ha - at 40 odd cents per share Centro is now trading at 100% of it's promised distribution for FY08.

A yield of 100%. Classic!!

 

[Nathan_b]

yeh i know hey...

it looks good buying at these prices hey? i topped up today, i think will be really funny if they refinance and there is no further impact on dividend or little change..

will be a classic outcome, buying a share at its dividend.

 

[zebop]

yeh I bought some more shares today @.40c
I look at it this way: Plenty of negitive statements everywhere..and deserved. However no one outside Centro really knows the position or more importantly their stratgey to get out of this mess and go forward. The banks have one thing many are overlooking...they stand to lose heaps if it goes under..I would say it is in their interests to provide additional time and possible renew confidence in Centro with regard to possible new strategies..am I dreaming

 

[TheAbyss]

yeh I bought some more shares today @.40c
I look at it this way: Plenty of negitive statements everywhere..and deserved. However no one outside Centro really knows the position or more importantly their stratgey to get out of this mess and go forward. The banks have one thing many are overlooking...they stand to lose heaps if it goes under..I would say it is in their interests to provide additional time and possible renew confidence in Centro with regard to possible new strategies..am I dreaming

I stood to lose heaps if I closed some positions yet I closed them and wrote off some cash so I wouldnt lose even more. Why wouldnt the banks be of similar mindset zebop?

 

[ROE]

Buy CNP in hope and pray because when it comes to the bear market everyone is for themselves, wont be a white shinny knight coming along...everyone will be hording cash

but good luck with your punt guys, I am too chicken to gamble and my bet on Tennis never pay off so I know how bad I am at gambling

 

[nikkothescorpio]

It's going to be one heck of a 'firesale'. Should be a few other managers picking some assets up at very good prices.

What a dog of a time to have to do a carve up too - not that there ever is a great time but this is a very poor one.

 

[Bushman]

I stood to lose heaps if I closed some positions yet I closed them and wrote off some cash so I wouldnt lose even more. Why wouldnt the banks be of similar mindset zebop?

40 cps should be the floor for now given the revised distribution per share is also 40 cps. There has been no subsequent revised earnings guidance.

Remember the banks who refused to refinance were yanks and the new CEO is a yank. Co-incidence? He is there to win BoA and Wachovia over using key relationships gathered over 25 + years plus as the New Plan. He is also a relationship man, unlike Scotty, so he might be able to pull a rabbit out of a hat.

 

[9krpm]

The beleaguered Centro was also hit hard yesterday, down 0.65 cents to 40c despite suggestions that its new management, led by Glenn Rufrano, has won its bankers over and staved off any talk of receivership.

It is understood that the financiers will give the troubled retailer an extension on its February 15 deadline to help it trade out of the debt crisis.

However assets sales are still on the cards, with the United States-based hedge fund Citadel and the Canadian Brookfield now in the Centro data room, along with locals Stockland, Mirvac and CFS Retail, among others.

[source SMH]

It appears there will at least be a bit of competition for the assets?

 

[xoa]

40 cps should be the floor for now given the revised distribution per share is also 40 cps. There has been no subsequent revised earnings guidance.

I'm worried it'll be the banks who pocket the 40cps, not shareholders.

-----------------------------------------------

 

[Bushman]

I'm worried it'll be the banks who pocket the 40cps, not shareholders.

-----------------------------------------------

That is the risk at the moment. Nothing is certain with CNP - hence the CEO might pull a rabbit out of a hat. Also it is uncertain if 40 cps can be met given the likely asset sales and the effect on CNP FUM. Throw in the likely effect of the housing market collapse on US consumers but it is unlikely that this will affect FY08 distributions. FY09 is another story.

 

[numbercruncher]

MELBOURNE, Jan 24 (Reuters) - The new chief executive officer of troubled shopping mall owner Centro Properties Group (CNP.AX: Quote, Profile, Research), said on Thursday he was not anticipating any asset sales now.

Chief Executive Glenn Rufrano told reporters said the company was currently pursuing injecting equity into the company. But he said he was not in a position give any figures at this stage.

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSSYU00380920080124


New CEO seems a little confident, who knows he may swing things about a little ?

 

[DionM]

Well I bought into CNP today. For better or worse.

Two things - confidence shown by the CEO (and he's a yank, as pointed out above). Secondly, the news that Colonial didn't sell any of it's stock in CNP at all. Colonial must know something to keep confidence like that. Here's the link to that story: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aGG9zaRF6Z.E

If CNP can secure some sort of funding, they're off the hook. A very very big IF, I agree.

I've only taken a very very small position - basically I've treated them like a speculative explorer ... I won't be too worried to see the money disappear; or indeed have to wait a long time to see something.

The dividend issue is interesting; if they secure funding and thing settle, there would be little reason for no dividends. My little gamble could pay itself off in short time.

 

[numbercruncher]

Well your probably looking at paper + already Dion, pretty much sitting on daily high atm with

678 buyers for 12,075,430 units 323 sellers for 7,646,895 units

so maybe more to run today ?

 

[DionM]

Well your probably looking at paper + already Dion, pretty much sitting on daily high atm with so maybe more to run today ?

Possibly, but like I said, it's a tiny position. I bought at 47c too, so not exactly at the bottom.

 

[TunaBum]

http://business.theage.com.au/centro-can-be-saved-says-new-ceo/20080124-1nzf.html

Centro can be saved, says new CEO

Glenn Rufrano, Centro's new chief executive, outlines his refinancing ambitions for the property group.

January 25, 2008

GLENN Rufrano, the man charged with turning around the fortunes of the Centro Properties Group, has ruled out a fire sale of assets, confident he can persuade the company's banks to extend a February 15 repayment deadline on $3.9 billion of debt.

In his first media briefing since being appointed to lead Centro in the wake of former chief Andrew Scott's resignation last week, Mr Rufrano admitted the company had a severe credibility problem.

He said Centro, which has lost $4.5 billion of its market value since revealing its refinancing problems to the market on December 17, simply had too much debt that needed to be paid back at a time he described as "the worst" period for debt markets for 20 years.

Mr Rufrano, who has been meeting with Centro's Australian banks - including National Australia Bank, Commonwealth Bank and ANZ - since arriving in Melbourne last week, will fly to the US tomorrow to negotiate with banks and bondholders.

The Australian banks, while not prepared to say publicly, have indicated that they have been in "serious discussions" with Centro to extend the deadline and to work on a new debt-refinancing plan.

Mr Rufrano said the banks could expect to get their money back if "they work with the company".

"We are being open, honest and transparent with them to convince them we are the best managers of their collateral," Mr Rufrano said.

"I have comfort that the banks are not going to put themselves in a position with us that will make it untenable for them and us as long as we're doing our jobs." He also said Centro had allayed the concerns of US bondholders, who last week engaged a law firm to retrieve $US450 million ($522.52 million) in notes, believing Centro was in default.

"We have now restructured their debt and they have all accepted it," he said.

Centro's new boss said the company was trying to raise money through a sale of its stakes in the unlisted Centro Australia Wholesale Fund in Australia as well as the Centro America Fund.

The two funds have a combined $3.7 billion in funds under management.

The company's "equity injection" plan also includes an issue of hybrid equity such as convertible notes.

Mr Rufrano said Centro had already had significant and equal interest in all three options, with the company to open up its books to interested parties for due diligence on Tuesday, a week later than planned.

Centro will also consider any offer for the whole group. But the company is not prepared to sell assets such as The Glen in Melbourne, or Bankstown in Sydney


Di

 

[vida]

I saw them bottom at .30c the other day but I was hard at work and could not focus on sharemarket for more than a few secs here and there, it was all I would have needed really. Time is of the essence during this volatility and then the opportunity passed and the day was over and the SP had risen a bit. Then today I had more time to watch the market, was mesmerised by the SP movements in CNP and put in a buy order at .66 cents which was quite a way from bottom and I did pay too much considering what it has been this week but in the long run it probably will turn out to be a bargain. I hope so anyway - we can only wait and see. I am a long term investor and don't trade much at all as it takes too much out of me. If it spikes hard next week I may sell but really would prefer to hold - if it falls well i just hope not! There is more positive media about CNP lately so it just may pan out well.

Possibly, but like I said, it's a tiny position. I bought at 47c too, so not exactly at the bottom.

 

[ASK]

Centro continues to recover! looks like their might be some resistance at 70 cents... doubt it will break through until some get a positive media release. Anyone still jumping on board at the current sp?