centro halted over debt talks

Centro halted over debt talks
15/12/2008 4:33:25 PM
Centro Properties Group (CNP) requested a trading halt of its stapled securities this morning pending an announcement regarding the outcome of negotiations on the extension of its finance facilities that were due to expire today. Earlier this month, the company warned it needed to roll over or repay $8 billion debt or face going into administration.

Centro had been granted extensions on debt repayments for over twelve months and had seen its share price fall more than 99% since the beginning of the year.

Market speculation suggested the group would be thrown a lifeline similar to that of debt laden Babcock & Brown Limited (BNB).

Last week, Babcock & Brown's lenders granted the company a $150 million funding facility, suspended its debt covenants and more or less took control of the business.

Centro requested its securities be halted until it makes an announcement regarding its debt position or until 17 December.

Centro securities are halted at 8.7c.