TOP News Centro Properties secures lifeline 7:10 PM
Embattled shopping centre owner Centro Properties has secured a lifeline from bankers, reaching an agreement in principle to initiate a restructuring plan.
The Commonwealth Bank of Australia, owed $1.2 billion, has been a notable opponent to the property group’s proposed plan to swap debt for hybrid equity.
Centro’s temporary retrieve gives some indication that the three-tiered banking syndicate, owed $5 billion by Centro, hopes to salvage some value from the struggling company.
Centro's shopping centres have so far managed to hold their head above the water amid the turmoil and it does have strong underlying assets.
Centro has about $2.3 billion of debt and a further $US450 million ($A684.05 million) owed to private US-based noteholders.
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