afr rufrano goes for five card trick, page-4

As far as im aware CNp have not missed a repayment of interest.....is this correct?

if so......the only issue is a rollover of debt on better terms that suit all lenders.

Considering they have met interest repayments, the banks are still recieveing their interest.

Makes little sens to me to have the banks take over and try to sell what CNP are having trouble doing.

Also once the receivers come in the intrest can be stopped meaning all lenders would wait until sales procedd, which could take years, before seeing any payment.

So no return on their own capital, or they can extend the debt over another 2-5 years giving CNP the opportunity to restructure and make sales in a timely manner without the large refinance issue over its head.

The assets are fine, in fact very good, malls and the like are great cashcows but cant be sold in a week, they take time.

Banks will extend imo and granted may expect further security being debt for equity swap or the like.

This will be short term hurt for long term gain for shareholders.

This situation may also remove the high default rates CNP are currently copping such as the 3% extra.

All in all survival is a win for everyone in some form, including the rest of the retail, commercial market.

Even if the banks pull out and say CBA got ytheir $1bn back in record time...whichj they wont.....who are they to lend it to anyway?

cheers