investors make joint bid for centro, page-34

"you seem to be saying that asset sales are not needed, but the papers are full of the information that buyers are sifting our assets as we speak so that asset sales are in fact highly likely."

If CER was not associated with CNP there definitely would not need to be asset sales. Lenders want two things. The first is security backing for a loan and the second is the ability to service the loan. CER has no trouble covering both these requirements. The nta exceeds the debt by a considerable margin, more than would normally be required for a commercial loan. Bear in mind also that CER has valuable intangible assets. CER is also trading profitably after meeting all interest payments on time.It can service the debt.On its own I probably could easily refinance the debt.

It is my hope that only the assets of CNP are being sold and one of those assets is its CER holding. However there is a complicated connection between CNP and its associated trusts that includes CER that will take some unravelling without having an effect on CER. The saving grace for CER investors is the fact that CER does have positive equity in property.

The board of CER should be tightening the screws on CNP in more ways than one. They should also have a share issue to reduce the debt and obliviate the majority shareholding of CNP.