what to look for in the announcement, page-20

Hope 2008,
Biggest risk will be in the next week. Assuming this risk passes it is then up to the management to lower gearing level going forward.
Failure to gain an extension on 30/4/2008 shows how close to the wind they are sailing. It might only be one bank & $200m but are the rest of the banks prepared to absorb this extra funding into their loans? Some are so exposed they may have to throw a little more into the pot, because the consequences of CNP losing its management income is enormous to the overall value of assets in the structure.
Many on HC take extension as a given but this was not the case on 30/4/2008 so the risk has increased considerably, since 30/4/2008. We all know many parties are trying to make this work but it can't be taken as a certainty. CNP certainly has less risk if a reasonable extension period is granted.
I hope it works out for all long term investors but remember current models valuing assets are irrelevant if no extension. Any share spike may only be short term.
No one has mentioned tax loss selling in late June, and there is sure to be plenty in CNP & all the other stocks that have fallen from grace.
Regards
Buffett
PS: No investment advice given on CNP please do your own research.