centro as responsible entity, page-5

that the banks will sack Centro as the responsible entity and employ another entity devaluing the Centro group significantly as most of the value in the Centro group is recognised in its ability to operate as a responsible entity (RE).

Whilst I believe that there is a significant chance that a debt for equity swap may eventuate for CNP and a condition may be inserted into the agreement that CNP is to stand down as RE, I do not believe this would materially affect CER.

I not sure about this CNP are major shareholder in CER and as such still really control it. It essence it doesn't matter how many independant directors you put into the boards. Untimately CNP own 50% of CER and have control of CER. This makes it very complicated for someone else to come in and manage the properties. Imagine Westfield managing a GPT shopping centre in effect. Different ideas from different management would bound to get in the way. Unless CNP sold out their 50% I can't see it working them not Being RE for CER.