Distressed shopping centre fund Centro Properties Group Ltd has reportedly 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 of Australia Ltd to back the deal, according to a report on The Australian newspaper's website.
Centro Properties went into a trading halt on Wednesday on the deadline for it to finalise a longer-term extension on $2.3 billion in debt owed to its Australian lenders.
The extension also effectively covers another $US450 million ($A473.98 million) in US private placement notes whose holders have agreed to act in line with Australian extension arrangements.
As well, two other debt obligations of $US1.3 billion ($A1.39 billion) and $US1.2 billion ($A1.29 billion), owed by Centro and Centro Retail Trust, which mature in September were also made contingent on current debt being refinanced.
There was speculation that the German bank WestLB was the hold out in the group, since it also has its own problems after posting significant financial losses last year because of the sub-prime fallout.
Centro's main local bankers are ANZ Banking Group Ltd, Commonwealth Bank of Australia, National Australia Bank Ltd and St George Bank Ltd.
It also has US bank creditors, including JPMorgan and Bank of America.
German bank West LB also agreed to the extension, The Australian website reported.
The Commonwealth Bank, which has a $1.1 billion exposure, had demanded more security before agreeing to the extension, it said.
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
