centro is a very bad boy

Bad boy syndrome
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How good is this article.....I mean we all know that the banks dont want to see CNP go under and we all know that CNP will survive but its just seeing it in black and white that revives those feelings
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"While today's admission from the NAB throws the light on problem derivatives, and the spectre of a recession and consequent job losses looms as a problem for big bank mortgage books, the ''bad boys'' exposures also lingers.

The broking industry has coined a new phrase for the likes of Allco, Centro, ABC Learning and MFS which blew up in the first quarter of this year. They are the ''bad boys''.

At this point in the cycle, it is the bad boys who account for most of the significant problem exposures. As UBS notes today, though, the market is not seeing a ``systemic deterioration in credit quality'' -- at least, not yet.

And these bad boys are all being worked out, refinanced or extended.

In the wake of the 1987 crash and market fallout in 1989 which saw Bond Corp, Christopher Skase's Quintex, Adsteam and others crash into the warm embrace of the insolvency practitioners - and stay there for years - this time around the banks have sensibly opted to keep bad boys out of liquidation.

See the apparent generosity in terms and extensions to the bad boys, Macquarie Countrywide and other REITS, and recently Babcock & Brown.

The rationale is clearly this: the banks have seen the last of the Eighties wind-ups finally grind through the courts in the past two years (Bond Corp). The liquidators and lawyers made literally a billion dollars in fees out of these insolvencies. "

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