Baron1, Weak spot for CNP is 65% of assets in US & not the same quality as Australian assets. They could have some real issues generating sales in US given falling asset prices, so banks may have had no choice but to grant extension. Also suspect there could be some banks disagreement about giving extensions, which creates a real problem of how this is handed. I will not be getting too excited by an extension, but more interest in what values potential buyers have come back with for CAF etc. Think we need to see $1b supplied from CNP side to get gearing into acceptable levels for say 3-5 year financing going forward. Would not like to see steep discounting of US assets to reach $1b. Previously would have been disappointed to see key prime Australian assets sold i.e. The Glenn etc, but it may be better to raise funds quickly & hold heavily discounted US assets for a more orderly market in the long term. Australian assets would not require steep discounts & would achieve good prices. Holding the so called "rubbish assets" with funding in place would allow these assets to bloom over time again. Regards Buffett No investment advice given on CNP
CNP Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
