Source: The Australian Financial Review newspaper (Page 18) Date: Monday 21 April, 2008
Excerpt from article:Underdog barking up the wrong tree
The article starts off talking about Kerry Stokes's Seven Network - then leads into this:-
It's also shaping up to be a big week for Glenn Rufrano, the chief of embattled property company Centro Properties Group. Rufrano spent last week doing the rounds of institutional shareholders in Sydney and Melbourne.
He was pushing the line that the company's Australian and US banks were continuing to strongly support the company because it continued to be profitable and meet its interest obligations (which were now more expensive than ever).
It is understood that rumours of bids around the 90c-$1 mark are true - the stock last traded at 42c - but it seems clear that Centro's board won't be dealing with anyone at that level.
Centro has been at the mercy of its lenders since revealing a $3.9 billion debt funding shortfall last year. It is widely expected the group's Australian-based lenders will extend funding arrangements beyond the April 30 deadline.
The bidders have been working under the assumption that the deadline meant the company had to take the best offer on the table or the banks would put them into administration.(TP comment: Sucked in, lol)
However, it now appears that the company and its banks, which want to be repaid in full, agree that they don't have to pursue that course of action. With this in mind, it is believed that a longer than expected 12-month extension will be granted this week.
Article continues with other news...
Cheers, Pie :-)
CNP Price at posting:
0.0¢ Sentiment: None Disclosure: Held
