centro expected to get 3 bids for us malls, page-3

Hi all,

Its the below 2 paragraphs that I find most interesting:


"Bids were expected to fall "in the range" of $9 billion to $9.4 billion, the latter being the value that Centro has assigned to the U.S. portfolio on its books, the people said."


"Centro's U.S. properties carry roughly $8 billion of debt. Thus, bids of $9 billion or more would provide extra proceeds to pare the debt of the surviving Australian company."


Looking at the CNP supplemental (page 14), the $9.4b figure is the amount of properties CNP has under management in the US. If any bid placed by the consortium is greater than the amount of US debt that is secured against these properties, then CNP would be able to pay off in full all SuperLLC debt and extinguish CER with any impairment liability that it currently has in its books.

We are only carrying the impairment in the event that CNP is unable to make good its negative equity in SuperLLC.

Anyhow lets see how this all unfolds. As a CER holder, I must say Im feeling very comfortable.

Cheers