Yes every announcement has had a positive effect on CNP's SP. As we are seeing at the moment SP always builds leading up to and spikes on good news. So short term CNP looks like a VERY good bet. Whether CNP can hold the gains this time and build on them will come down to what exactly is in the announcement i.e. any surprises. But short term it looks very good as I said.
Whether CBA is 90% secured or not is not relevant if we are in the middle of a credit freeze who could they sell CNP's assets to, to recover their money? They will take a bloodbath because they wouldn't get anywhere near fair value. Hence as I said they just can't afford to shut CNP down. And why would they if they are managing to make their interest payments.
What is worse is how the closure of CNP would affect other distressed companies the banks have lent to. I could see a domino effect happening as investors dumped out of stocks that were in similar positions – that would only make the banks positions even worse. Losing HUGE on CNP they can’t afford but having it spiral would be even worse. CNP will get the extensions perhaps a much longer term one.
And yes asset sales have begun and are continuing which is great news. BTW thanks for taking the time to respond and all the best.
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