Well ... I have just arrived home to find the announcement we have all been waiting for sitting on my doorstep.
Here are a few points in brief I would like to make:-
Effectively it looks as though we have a one (1) month 'interim' extension to sort out the paperwork.
It was great to read that Centro are lowering their loan ratio by way of Convertible Bonds (which is a probability I had thought of actually).
So, the balance of the Oz debt is to be refinanced for three (3) years - subject to agreement.
In the meantime back to limbo-land for another 4 weeks while we dot the I's and cross the T's.
This seems like a workable mix of a deal. Theoretically it gives assurety and continuance of business, a stable platform to work around and a lower loan ratio which should mean lower repayments - all for a little (?) dilution potentially.
On the negative side, the Company will be diluted possibly ~15% with no dividends for 3 years either - most other negatives are well known .
A Question: If the interest is capitalised in this context, does this mean that the meter is still running for the Banks???
Cheers, Pie :)
CNP Price at posting:
8.7¢ Sentiment: None Disclosure: Held