banks hold key to cnp, page-43

CNP holds most of CER through its other funds so that the 51% of CER that CNP holds couldn't be distributed to CNP shareholders - the shares would be sold like any other asset CNP holds - probably by bulk placements.

In any case, if CNP goes under, other asset sales from CNP holdings would also be at fire-sale prices which would be seriously under current valuations. This is what some are waiting for - the ability to pick up good assets at fire-sale prices. This may breach current LVR requirements in current loans, bringing more debt to the current account to be repaid.

Not only this, but the ramifications of a fire sale of retail assets in the US and Australia would undermine the LVR of other assets the banks have on their books. If CNP & CER go under, it could be very ugly.