2nd afr article on centro today...

Source: The Australian Financial Review newspaper [Page 76 - Property]
Friday 2 May 2008

Centro syndicates get $500m refinancing package
Mathew Dunckley

The troubled Centro Properties Group has successfully refinanced more than $500 million worth of expiring debt on behalf of a swag of its syndicates.

Centro announced yesterday that existing financiers to eigh of its 36 syndicates had agreed to a two-year refinancing package covering loans that expired at the end of April.

The syndicates, which own more than $1 billion worth of property, involved in that $330 million refinancing are Centro MCS 2, 3, 4, 5, 6, 8, 11 and 12.

"This new facility is currently being documented and a short-term, seven-day extension has been agreed in order to finalise the necessary documentation," a company statement said.

Two further syndicates, Centro MCS9 and 16, have had their loans extended on shorter terms until May 30 and March 31 respectively.

The syndicates involve more than 5000 retail investors who have been sweating on the refinancing news to find out if their distributions will be affected by higher borrowing costs.

Centro yesterday refused to comment on the impact of the arrangements until they were finalised.

On Wednesday, the company announced a week-long extension of about $5.3 billion of maturing loans over Centro and the affiliated Centro Retail Trust.

Centro has been at the mercy of its banks since December and hopes to secure a longer term extension next week until at least September 30.

It confirmed yesterday that the longer term extension had been agreed by all lenders except one, believed to be German bank West LB, which was owed less than $200 million. The European Union has approved a $7.8 billion bail-out for the regional West LB bank, which was rattled by its exposure to bad US debt.

Meanwhile shares in Pelorus Property Group, which tried to seize control of several Centro-managed syndicates earlier this year, were yesterday suspended from trade on the Australian Stock Exchange after breaching listing rules. An ASX spokesman said Pelorus had missed a May 1 deadline to lodge its March quarter cash-flow statement.

Further it is understood that a postponed meeting of Centro syndicate investors called by Pelorus to oust the ailing retail giant as manager will now have to be cancelled and a new meeting called after Pelorus failed to issue a notice of the meeting within the necessary time frames. Pelorus was unavailable for comment.

Ends.


'We're in a capitalist system; it's a harsh system; and if you're wounded people try to eat you. People believe Centro is wounded. We're getting cured, we're going to cure ourselves, and so you will find that any effort on that part will have resistance'. - Glenn Rufrano, CER H1 Presentation - 28.02.2008


Cheers, Pie :-)