CNP - Centro Properties Group

Re: CNP Centro Property Group

chops_a_must said:

You are well aware aren't you that ANZ apparently in its last quarterly report or whatever it was, basically prepared the way for closing out on CNP aren't you? Meaning, they have already written it off completely, and will be unlikely to extend any more losses to CNP.

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Thanks for watching my back, Chops. I intend on finding another share to trade before december 15, but the important part of my post was the words "Intra" and "Day"...

Correct me if i'm wrong here but from my understanding ANZ has an exposure of 1.2 B $ to centro in debt. Of that amount 680 million is unsecured and 520 million is secured.

As of the last quarterly report, ANZ set aside an extra 360 million for subprime exposures, this amount was not even explicitly set aside for centro.

How does that equate to completely writing off centro already?

Alex welcome aboard....

I reckon we will still be talking about the next extension come mid next year, i think there is tto much blood on the banks hands atm, to cause more, especially when they are meeting all servicing requirements and turning profit..

I've just sold out of CNP at 7.4 cents after a good purchase price yesterday.
I was thinking this was going to be my last snatch and grab on this stock until things settle after the december 15 deadline.
It's jumped over 45% today with good trading levels. Has anyone heard any inside info on whether their debt looks like getting refinanced? I know they employed some big movers and shakers in from the finance market to steer them through this turmoil..Someone's confident.Still no official announcement, though.


cheers,

http://www.borderwatch.com.au/archives/1938
Centro plaza for sale at the right price.

5 trading days to go......before (debt refinancing extension?).

Interesting gain today with no announcement yet. I think people are betting a good announcement on Monday. Would it trigger more gain as it did BNB announcement?

Centro may get a brief stay of execution.

http://www.theaustralian.news.com.au/business/story/0,28124,24781992-36418,00.html

And this.

http://www.theaustralian.news.com.au/business/story/0,28124,24791824-5001641,00.html

Also of interest is that as part of a recapitalisation, Macquarie Office Fund (MOF) sold a US office tower at a 22% discount to June 30 2008 valuation with part proceeds paid to MOF allready and the remainder to be paid in the future (some time in 2009). While not retail is does beg the question as to how much better (or worse) the banks would go in selling the large real estate assets of Centro from administration.

It will be interesting to see by Tuesday whether Centro is still on life support or dead. The pain of death might be more than the banks are prepared to bare at the moment.

webclever said:

Interesting gain today with no announcement yet. I think people are betting a good announcement on Monday. Would it trigger more gain as it did BNB announcement?

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Take a look at where BNB is now!!! The average punter lost money on the first day. You have to be extremely quick and lucky to make any profit.

Centro successful with extension. Tomorrow is a good day for some CNP holders who bought it on Friday.

http://business.theage.com.au/business/centro-debt-deal-all-but-done-20081216-6zfy.html

Centro has been saved long term debt structure.

Still reading announcement but looks good for a big run tommorrow.

Well done to all holders.

No distributions to shareholders until conversion of hybrid securities until 2015..

Hybrid securities, when converted at some point before 2015 will give the banks 90.1% of Centro..

All shareholders are effectively now very minority shareholders Seems ridiculous it's actually still running as an entity, but it's not for the benefit of shareholders that's for sure.

The outcome provides a future for Centro and retention of some value for our existing shareholders and is superior to the prospect that Centro otherwise faced of entering administration or liquidation.”

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How nice of them...

Centro Properties secures lifeline
TOP News
Centro Properties secures lifeline 7:10 PM
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PBL Media receives $335m capital injection, Packer holding falls below 1% 3:41 PM
Aust stocks close 1% lower 4:18 PM
RBA sees inflation falling below 2.5% by middle of 2009; January meeting unlikely 1:05 PM

The Spectators
A tonic for the times
Gottliebsen: Black and gold value
Don't believe the hype
Kohler: Dead heat
Gottliebsen: Conroy digs in
By a staff reporter, with Reuters

Centro Properties Group Ltd has secured a lifeline from its bankers, with a one-month extension on all of its facilities part of an agreement in principle to initiate a restructuring plan.

The embattled shopping centre owner has been given a one month interim extension to all of its facilities that expired on December 15 to allow for time for documentation of the re-financing and stabilisation.

Centro has about $2.3 billion of debt and owes a further $A684 million ($US450 million) to private US-based noteholders.

Centro said that no assurance can be given that the documentation will be completed or that the final terms will not be different from those released to the market today.

Centro chairman, Paul Cooper, said the outcome reached with the group's financiers will provide a future for Centro and is a better case scenario than a full-blown collapse.

"The outcome provides a future for Centro and retention of some value for our existing shareholders and is superior to the prospect that Centro otherwise faced of entering administration or liquidation,” Mr Cooper said.

Chief executive, Glenn Rufrano, said the company now has the liquidity and time to maximise the business and pursue an alternative recapitalisation strategy.

"This outcome will stabilise Centro and provide sufficient liquidity with time for the company to maximise the value of its property operating platform and funds management business," Mr Rufrano said.

"This transaction also provides the opportunity to pursue an alternative recapitalisation strategy in a more favourable economic environment," he said.

Mr Rufrano told said Centro was still trying to sell shopping malls in Australia and the United States.

"We will continue to try to transact, and we may have some success," Mr Rufrano said.

The Commonwealth Bank of Australia, owed $1.2 billion, has been a notable opponent to the property group’s proposed plan to swap debt for hybrid equity.

Centro’s temporary retrieve gives some indication that the three-tiered banking syndicate, owed $5 billion by Centro, hopes to salvage some value from the struggling company.

Centro's shopping centres have so far managed to hold their head above the water amid the turmoil and it does have strong underlying assets.

Centro shares were in a trading halt pending the release of the announcement to the market.

The group's shares last traded at 8.7 cents on Friday.

Lucky_Country said:

Centro has been saved long term debt structure.

Still reading announcement but looks good for a big run tommorrow.

Well done to all holders.

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You think?
According to my cals there is about 822,222,222 shares currently on issue. For 75% (90.1-14.9) of this shares (ie for 616,666,666) the banks are paying $1.05 mil + 7years of compond interest (say at 7%pa), which comes to about$1,654,555. this works out to be less then $0.002 cents per share. You think it is good value for share holders?

"
Centro’s temporary retrieve gives some indication that the three-tiered banking syndicate, owed $5 billion by Centro, hopes to salvage some value from the struggling company. "

I bet, at $0.002 cents a share even at todays price the banks share is worth over $4.3 mil. Not a bad deal!.......for the banks that is!

Lets face it there is not that much risk for the banks at $0.002 a share how much further can it fall?

The interest being capitalised on the $1.05 million convertable bonds is interesting in that it raises the question as to whether Centro's income into the future would have been sufficient to cover the interest on it's debt.

banks just milk every pennies centro earns and when they cant milk any more time they come in and shut down the shop.

Why such short extension one after the other?

There is nothing left for shareholders now that it reach this state.

Banks will continue to put out their hands for every single cents that Centro earns and if Centro dont hand it over, they shut down the shop and they shutdown the shop if Centro run out of money...win win for bank.lose lose for shareholders.

If the term is not paying dividend, I would rather vote against it.
Let them do fire sale, let the property market collapse, then I can buy my first home cheaper which might cover my loss.
Banks get the whole lot, managers get a secured job, what do investors get?

thunderer said:

If the term is not paying dividend, I would rather vote against it.
Let them do fire sale, let the property market collapse, then I can buy my first home cheaper which might cover my loss.
Banks get the whole lot, managers get a secured job, what do investors get?

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Answer = NO DIVIDEND.

Down 20% so far...

(not holding)

Definately a long term hold on CNP to try to recover any real value.

A few things to remember though are that CNP is just above its low in the cycle with the granting of the extension.

GR now has the chance to rebuild this company.

Centres are generally holding up well.

CNP are still profitable.

Yes I know its going to be a long road but it may become worth while.