The point is CNP should have done the deal by now. Why haven't other banks covered the difference? It makes me think there are more skeletons in the closet.
Don't forget an extension until September is still only a first step. If they don't achieve book value sales of the higher leveraged properties or get a large equity injection they won't be able to reduce gearing and the recapitalisation plan will stall.
If valuations slip further the recapitalisation plan itself might not be enough to reduce gearing. If that happens the banks will be even more unwilling to extend again.
CNP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
