Ceprieveentro gets six months' r
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* Carolyn Cummins
* April 17, 2008
*
BANKERS to the beleaguered Centro Properties are moving closer to extending the deadline for repayment of debt by a further six months to avoid the appointment of an administrator and consequent asset fire sales.
Centro has until April 30 to repay the first tranche of the $4.2 billion of outstanding debt to its Australian bankers, but it is expected that the financiers will confirm an extension to the end of September.
That would bring the schedule in line with the repayment deadline for its US-based bankers and bondholders.
It is believed that Centro's management, led by chief executive Glenn Rufrano, has made informal presentations to unit holders this week to update them on the progress of the recapitalisation process.
It is believed Mr Rufrano has told investors that he is reviewing the decision to sell Centro's stake in its two wholesale funds and just sell individual assets.
That is a complex task, as it would involve dismantling the ownership structure of those trusts and the joint ownership of the assets within the trusts. However, buyers are said to be lining up for single assets rather than a portfolio.
Centro's securities have been heavily sought after in the past few weeks by day traders, as evidenced by deals conducted through CommSec and Ezzing with anticipation that the bankers will give the group a lifeline rather than plunging it into the hands of an administrator.
Centro yesterday closed up 0.5¢ to 47¢, while its associate, Centro Retail Trust, was pushed up 3.5¢ to 41.5¢.
Since December 15 last year, when Centro revealed it would not be able to repay its bankers, its securities have fallen from a high of close to $8 apiece.
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