why banks dont give long term extension, page-24

Hi ptliav/CT,

Well I am certainly no Economist [nor Accountant for that matter] lol, so I cannot say what would happen if Centro were forced to sell their properties at firesale prices. To tell you the truth I can't even imagine what would happen but I do agree that it certainly would be catastrophic!!!

Following any fire sale of Centro properties however I would certainly think there would be a flow-on 'contagion effect' & therefore I would agree with CT insofar as the Westfields, Stocklands et al would be forced to revalue down their assets which would in turn increase their existing gearing levels.

I would also add that IF IF IF things were to go pear shaped and we were to go into Administration this does not necessarily mean that the Administrators would fire sale the Centro properties; they may just take control. But having said that I don't think this will happen either because I think the Banks effectively do have de facto control/leverage anyways via the existing experienced Management & the new "separation" process which we see occurring atm.

Cheers, Pie :)