Centro Properties Group’s US joint venture business Centro NP LLC said it saw significant liquidity problems in the short term after posting a net loss of $US299 million ($345 million) for the June 2008 quarter.
In a form 10-q filing to the US Securities and Exchange Commission on Tuesday, Centro NP said there was substantial doubt in its ability to negotiate extensions of credit facilities, which could have a material adverse effect on the Company’s liquidity and financial condition.
Centro NP is a subsidiary of Super LLC, a joint venture between Centro Properties Group, Centro Retail Trust and Centro MCS 40.
It also said that an unfavourable outcome for Centro Properties and Centro Retail in their refinancing negotiations could have a negative impact on Centro NL.
The property group has until September 30 to convince its bankers it can pay back its $4.2 billion of debt.
Centro NP generated net income of $US4 million in the period from April 5 to June 30, 2007, according to its statement.
During the June quarter, the company suffered a $US173.5 million impairment in its goodwill and the value of its property management business. It also paid a $US95 million charge for writing down properties.
Centro Properties Group results for the 2008 financial year are due out on August 29.
CNP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
