centro buys time for carve up..., page-4

The huge hurdle for centro will start September - first $4.2 billion to find then the challenge of re-financing US debt (about $9 Billion) at the end of the year. Six months isn't long to be able to secure enough capital to renew $13Billion in debt whilst the value of most of the properties it is secured against fall precipitously in both the US and Australia.

I can no longer see any way of them getting out of gaol as they may soon have negative equity unless there is a dramatic turnaround in the US and Aust commercial property market valuations.

I think the lack of any real response to the extension really underlines the markets feelings too. I've may a good margin on some short-term trades in centro but I'm spooked after adding up the numbers last night.