centro continues talks with lenderes to extend, page-24

http://www.theaustralian.news.com.au/story/0,25197,23664405-643,00.html


Centro secures debt deal with banks

CENTRO Properties Group has won support from its banks for a seven-month extension on its debt maturities.

The decision came after some last minute intervention from JP Morgan Australia chairman Rod Eddington who convinced wavering Commonwealth Bank to back the deal.

German bank West LB also agreed to the extension.

Centro (ASX: CNP: quote) is expected to release a statement to the ASX this afternoon confirming the news.

This gives the company more time to restructure it self and to sell property to meet its debt obligations.

The Commonwealth Bank had demanded more security before agreeing to the extension and substantial changes to the documentation which was eventually partially agreed to.

This followed late night talks between Sir Rod Eddington and Commonwealth Bank chief executive Ralph Norris.

CBA has a $1.1 billion exposure of which just $160 million is unsecured, while JP Morgan has the biggest exposure of all banks totalling some $2.05 billion.