centro debt announcement seen thursday...

Source: www.reuters.com

Australia's Centro debt announcement seen Thursday
Wed May 7, 2008 11:10pm EDT

SYDNEY, May 8 (Reuters) - Australia's Centro Properties Group (CNP.AX: Quote, Profile, Research), which owns 700 U.S. shopping malls, said it expects to make an announcement later on Thursday following media reports it has won a seven-month extension on its hefty debt obligations.

Centro had faced a Wednesday deadline to roll over A$2.8 billion ($2.6 billion) of debt.

Centro spokesman Jim Kelly declined to comment on a report on the Australian newspaper's Web site that Centro had won support from its banks for a seven-month extension to Dec. 15, but said an announcement would be made later on Thursday.

Centro, one of Australia's highest profile casualties of the global credit crunch, last week gained only a one-week extension on its refinancing deadline.

The May 7 deadline includes A$2.3 billion owed to Australian banks and A$505 million owed to U.S. private note holders.

The extension would also trigger an extension of A$2.5 billion of U.S. bank debt associated with Centro affiliate Centro Retail Trust (CER.AX: Quote, Profile, Research) to Sept. 30. This had been subject to the Australian portion of debt being rolled over.

Separately, two Centro wholesale funds are renegotiating a further A$1.2 billion in debt due later this year.

Shares in Centro Properties and Centro Retail were placed on a trading halt on Wednesday pending an outcome to the talks with creditors.

Centro borrowed heavily last year to fund a rapid expansion in the U.S., but ran into trouble in December after credit markets froze and its usual avenues of borrowing were closed.

Australian press reports have suggested troubled German state bank WestLB AG [WDLG.UL], said to be owed less than A$200 million, was the main roadblock to a deal, but the Australian reported on Thursday that Commonwealth Bank of Australia Ltd (CBA.AX: Quote, Profile, Research) had been the most demanding. ($1=A$1.06) (Reporting by Ben Wilson, editing by James Thornhill)


Ends.

Cheers, Pie :-)