BUSINESS SPECTATOR.... Ailing shopping centre giant Centro Properties Group Ltd is likely to win a desperately needed extension on $1.2 billion in loans, despite the company's failure to seal a key $870 million deal to sell 29 US malls.
Analysts say Centro's financiers are unlikely to push the company into insolvency because they would be left with ownership of Centro's shopping centres via a complicated web of syndicates and funds, The Australian Financial Review reports.
Winston Sammut, investment director of Maxim Asset Management, told the paper Centro's financiers were "probably leaning towards an extension".
"If Centro goes into administration, its lenders will be in the same position that Centro is at the moment -- with assets to sell but no buyers, or buyers at very low prices," Mr Sammut said.
Centro and its affiliates have around $7.4 billion of debt to refinance by the end of the year, $1.2 billion of which expires September 30.
On Monday, Centro announced the collapse of a deal to sell 29 of its 31 US shopping centres to in the Centro America Fund.
It said that talks with the purchaser were continuing, but there was no assurance the talks would lead to a further agreement on a sale.
CNP Price at posting:
8.6¢ Sentiment: None Disclosure: Not Held
