Pasminco was a zinc miner i.e. it produced a commodity, the price of which it had no control over and which dropped significantly. This occurred about the time the large and expensive New Century mine came on stream. Also, from memory, it (like some other resource coys) may have sustained large hedging losses.
Not to under estimate Centro's problems but presumably its income streams are less variable in nature eg rents which are fixed in leases which usually provide for increases over the term. The problem seems more to do with the credit crunch and a failure to refinance when the opportunity was available. From all reports its shopping centres are doing well.
However if Centro can't work its way thru its problems and is put into liquidation then final result may be the same as Pasminco. Perhaps if the situation was that dire this would already have happened and the fact that it hasn't is some small cause for optimism.
CNP Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
