CNP - Centro Properties Group

[Nathan_b]

Lavender,

Totally agree, my thought is extension is set,, but some condions, if the conditions arent set properly in annouyncement then it may be negative to the SP.

they have confirmed there will be detailed report today.

i think centro has a real deal today.

 

[propergeez]

I tell you what getting up at 5.30AM to go through US trading, AUS early trading, then to wait for the ASX to open at 7 am, whilst waiting for the CNP announcement all day is a pain in the backside. However I am on a lovely beach on Koh Chang island in Thailand and finally the sun is out after catching the tale of Cyclone Nagris for the last few days. Roll on 1pm I need a dip!

 

[Lavender689]

Market depth bids for buying seems to be going up, with indicate price going up from 47.5c to 48 c now, buy order surpassing sell order by 46152 as at 16:15pm. It seems positive.
Hopefully this reflects the leakage of good news in the announcement.

 

[Lavender689]

Lavender,

Totally agree, my thought is extension is set,, but some condions, if the conditions arent set properly in annouyncement then it may be negative to the SP.

they have confirmed there will be detailed report today.

i think centro has a real deal today.

Nathan,

Where did you get the confirmation from? Did you speak to the Investor services "IS"? I saw in some other forum that the lady at the IS said she was not sure.

Pls kindly confirm.

Thanks, L

 

[Nathan_b]

Lavender,

Yes i rang investor services, and they said that there will be an announcement today.

As far as detailed report it was mentioned in an artricle.

The IS woman definately confirmed the ANN today when i rang.

 

[nioka]

Market depth bids for buying seems to be going up, with indicate price going up from 47.5c to 48 c now, buy order surpassing sell order by 46152 as at 16:15pm. It seems positive.
Hopefully this reflects the leakage of good news in the announcement.

There has been very little change in the sellers during the day. I have had a sell in at 60c for more than a week. During that time my place in the queue has varied from the low 200s to the low 500s. Today I was between 318 and 322 all day. That indicates that most people are WAITING. I can't see anything in the quotes that indicates a leak of information.

 

[Lavender689]

I remember seeing a post in another forum this afternoon that they got AUD50mln from ANZ. Did anyone see anything like this?

I also noticed that the indicative price for CER is currently at a lower 46.5c, compared to 47 c previously, and last close of 48c. Are they getting any dividend from CER to cover the loan shortfall? Just an uneducated/informed guess.

Does anyone have any idea?

 

[Lavender689]

Lavender,

Yes i rang investor services, and they said that there will be an announcement today.

As far as detailed report it was mentioned in an artricle.

The IS woman definately confirmed the ANN today when i rang.

Thank you, Nathan.

That's good. Perhaps they (people in other forum) were talking to a different person at the IS.

 

[Nathan_b]

If you read in other forum you will find the attached article, and they are correct deadline is today like the deadline on valentines day.

ANN must be today weather company has gone belly up or it has refinanced.

goodluck everyone, i know myself i have lots riding on this one.

Nath.






MELBOURNE (Dow Jones)--Centro Properties Group (CNP.AU), the Australian shopping mall owner facing a midnight deadline on refinancing A$2.8 billion in debt, will make an announcement before the market opens Thursday, a company spokesman said Wednesday.

Earlier Centro halted trade in its stock and in Centro Retail (CER.AU), a property trust it manages, pending the announcement.

Last week the company, which had A$6.6 billion in mature debt, was granted a seven-day extension to renegotiate debt and avoid bankruptcy. U.S. and European banks in February gave Centro until Sept. 30 to refinance loans on the condition that other lenders granted a similar extension.

"We wait with baited breath on news," said Credit Suisse in a client note, adding the company was "too big to fail."

"If it were to collapse, and its A$9.5 billion empire were liquidated, the impact on Australian property values would be dramatically negative" and the banks' collateral would also be diminished.

Centro, which has a portfolio of 803 malls in the U.S., Australia and New Zealand worth A$24.9 billion, incurred the debt through a A$10 billion spending spree on U.S. assets in the past two years, and has been struggling to refinance after the credit crunch increased borrowing costs.

The company said last week it was close to finalizing terms for an extension until at least Sept. 30 on facilities that matured April 30 with all of its financiers except one owed less than A$200 million.

All of its lenders, including an Australian banking syndicate owed A$2.3 billion and U.S. noteholders who loaned US$450 million, have indicated support for the longer-term extension, Centro said.

Its lenders include Australia and New Zealand Banking Group Ltd., National Australia Bank Ltd., Commonwealth Bank of Australia Ltd., Royal Bank of Scotland, BNP Paribas, Japan's Sumitomo Mitsui Banking Corp. and Germany's WestLB.

The Wall Street Journal reported Wednesday, citing people familiar to the situation, the banks have agreed to extend the deadline to Dec. 15.

However, West LB, which holds less than US$200 million of Centro's debt and had just received a US$7.8 billion bailout from the European Union and wanted more time to consider the deal, the newspaper said.

"If WestLB elects to bolt from the extension, it could mean that Centro or the other banks will have to pay its claims or that Centro will end up in the Australian equivalent of bankruptcy court," the newspaper said.

Centro had A$4.2 billion in debt that matured April 30, while Centro Retail Trust, a property trust managed by the Melbourne-based company, had A$1.2 billion, and associated funds - Centro Australian Wholesale Fund and Centro MCS - had an additional A$1.2 billion, it said.

The company, which had debt of A$17.5 billion at Dec. 31, has lost more than A$4 billion of its market capitalization since Dec. 17 when the company informed the market about its shortfall on A$2.9 billion, which was later revised to A$3.9 billion and since escalated.

Centro Properties stock last traded Tuesday at 47 cents, while Centro Retail shares were last exchanged at 48 cents each.

The company is seeking buyers for two of its unlisted funds, Centro Australia Wholesale Fund and Centro America Fund, which have assets of A$3.7 billion.

Centro is being advised by Lazard Carnegie Wylie, which is handling the sale of its Australian Wholesale Fund, while its U.S. parent is negotiating the sale of Centro's America Fund.



-By Andrew Harrison, Dow Jones Newswires; 61-3-9671-4323; andrew.harrison@dowjones.com



(END) Dow Jones Newswires

May 07, 2008 02:28 ET (06:28 GMT)

Copyright (c) 2008 Dow Jones & Company, Inc.

 

[propergeez]

I remember seeing a post in another forum this afternoon that they got AUD50mln from ANZ. Did anyone see anything like this?

I also noticed that the indicative price for CER is currently at a lower 46.5c, compared to 47 c previously, and last close of 48c. Are they getting any dividend from CER to cover the loan shortfall? Just an uneducated/informed guess.

Does anyone have any idea?

Hi Lavender689,

The pricing on all platforms out of hours is not really indicative of the real pricing we will see AFTER announcement AND 3 - 0 minutes before open. All before that is conjecture and I wouldn't bother looking.

Sorry.

 

[Nathan_b]

as to the ANZ rumour, i know where that came from and apparently this was going on about 1 month ago.

i doubt has any connection with todays drama, also i doubt we will see this in administration.

its pretty clear this will pull through as it has lots of support off banks and other lenders.

if centro falls, every stock on ASX 200 will be in trouble because this company has good fundamentals and great cashflow.

 

[propergeez]

If you read in other forum you will find the attached article, and they are correct deadline is today like the deadline on valentines day.

ANN must be today weather company has gone belly up or it has refinanced.

goodluck everyone, i know myself i have lots riding on this one.

Nath.

The cut off for agreement with the banks is today (unless short term extension), the announcement to ASX can come later, ie tomorrow morning

 

[Nathan_b]

propz,

100% confident ann will come out, i would take a guess between 5-9pm tonight.

i even put a $20 on the table it will be out today.

regards,

Nath.

 

[Lavender689]

Hi Lavender689,

The pricing on all platforms out of hours is not really indicative of the real pricing we will see AFTER announcement AND 3 - 0 minutes before open. All before that is conjecture and I wouldn't bother looking.

Sorry.

Propergeez,

I know that it is not a indication of what the price is going to be tomorrow at open, but it does give a hint of market sentiment at present, doesn't it?

Thanks, anyway. L

 

[mihamilton]

Just called the IR lady. Based on her tone, it doesn't seem she knows anything about it. Even tho she said the ann will be tom, I think the ann will be made between 5-630pm

 

[Nathan_b]

keep an eyeout @ www.centro.com.au

that is where you will see an ann not the asx most likely.

remember last time big ann like this was 9pm friday night.

 

[nioka]

I remember seeing a post in another forum this afternoon that they got AUD50mln from ANZ. Did anyone see anything like this?

I also noticed that the indicative price for CER is currently at a lower 46.5c, compared to 47 c previously, and last close of 48c. Are they getting any dividend from CER to cover the loan shortfall? Just an uneducated/informed guess.

Does anyone have any idea?

A cent or two in the indicative price means little. Orders being placed now are not shown until tomorrow morning. A check at 9am tommorrow will be a better indication. Of course if there is an announcement before then there will be some hectic bidding one way or another.

 

[Nathan_b]

Looks like we have a december 15 deadline!

what would this mean? it means a lot of things, first i would expect this will show a lot of confidence in CNP and SP rise, may mean they can trade out and get refinance by then, means they aint going into liquidation, theres to much at stake to squash centro.

Enjoy the read.


Centro See-Saw
May 7, 2008; Page C12

Shopping-center owner Centro Properties Group, which needed to secure its fourth repayment extension on $4.9 billion in debt by Wednesday, had to grant one of its lenders a mulligan to do so.

Centro, which owns roughly 680 shopping centers in the U.S. and 130 in Australia, was on the verge of getting a 7 ½-month extension when one lender balked two days before the April 30 repayment deadline, people familiar with the matter say. German bank WestLB, which holds less than $200 million of Centro's debt, had just received a $7.8 billion bailout from the European Union and wanted more time to consider the deal.

The banks then granted a seven-day interim extension to resolve the matter. In a deal expected to be announced Wednesday, the banks have agreed to extend the deadline to Dec. 15, according to people familiar with the talks.

The catch: WestLB gets to revisit its decision late this month or early next, once again examining data that Centro will provide it about its operations, these people say. If WestLB elects to bolt from the extension, it could mean that Centro or the other banks will have to pay its claims or that Centro will end up in the Australian equivalent of bankruptcy court. Both Centro and WestLB declined to comment.

 

[Lavender689]

Nathan,

The article you posted were out there early in the morning.
I also noticed someone on another forum advised that it was a Sky Breaking News that extension till Dec. 15, was granted. Not sure whether it was from reliable source or not. Nowadays, you can't totally believe the media.

Anyway, I saw at least two mentions of Dec.15 extension from different sources today. It should not be out of nothing.

Let's keep our fingers crossed!
L

 

[Lavender689]

WSJ article re extension till Dec. 15 from another forum.

West LB extension also secured!!!

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

By a staff reporter, with AAP

Centro Properties Group has been granted a 7 and a half month reprieve until December 15 to repay $4.9 billion in debt, The Wall Street Journal reports.

The troubled shopping centre owner has secured its fourth repayment extension from German lender WestLB, sources told the paper.

Earlier, Centro Properties Group Ltd and Centro Retail Group Ltd were placed in trading halts pending the release of an announcement.

Centro Properties Group shares last traded at 47 cents, while Centro Retail Group shares enter into the halt at 48 cents.

Securities in both companies will not be traded until either normal trading begins on May 9, or an announcement is made.

Last week, Centro was granted a seven-day extension until Wednesday to finalise a longer-term extension on $2.3 billion in debt owed to its Australian lenders.

WestLB is believed to be the “local” lender that is holding out on approving Centro’s request for a five month extension to refinance its domestic debt.

The extension also effectively covers another $US450 million ($473.98 million) in US private placement notes whose holders have agreed to act in line with Australian extension arrangements.

Complicating the picture are two other debt obligations of $US1.3 billion ($1.39 billion) and $US1.2 billion ($1.29 billion) owed by Centro and Centro Retail Trust for their US joint venture.

Those debts already had been refinanced to September 30 but the extensions also were contingent on Centro's $2.3 billion debt due on April 30 being refinanced.

Centro's troubles began after it borrowed heavily to pay for acquisitions to spearhead expansion, especially in the United States.

It was caught out by the global credit crunch and struggled with the leverage on its 800-centre property portfolio, spanning Australia, New Zealand and the US.

With around $25 billion in assets under management, Centro is Australia's second largest shopping centre owner.

Last December, Centro and its stable of companies admitted their difficulty in refinancing short-term maturing debt.

Centro is trying to pay down its debt by selling some of its portfolio, including one of its Australian wholesale funds that holds 28 properties.

According to reports, WestLB is said to be resisting the extension as it deals with its own debt issues that have already resulted in the German government pumping $8.3 billion in to company to prop it up.

This week Centro Properties Group revealed that only one local lender, owed less that $200 million, was yet to agree to the September 30 extension.