I just had a few questions regarding the debt to be paid or rolled over at the end of this year. This issue came up in the CNP/CER ratio thread. But i have a few questions regarding this that i am hoping some one can shed some light on.
Even though CER is confident (or seems to be) that these will be rolled over, what is stopping banks from taking a bit of a hard line with CER like they have done so with CNP. Would they be able to put a clause not allowing dividends till debt is paid down as was done with CNP. Yes i understand that CER should have a good cash flow and thus give the banks no reason to do this, just wondering on the possibilities especially if the market were to get worse. Finally who are the loans through? Would we have CBA stalling as in the CNP issues.
Thanks for your opinions guys
CER Price at posting:
6.1¢ Sentiment: LT Buy Disclosure: Held
