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The shares of Centro Retail Group and Centro Properties Group have been placed in a trading halt ahead of today's deadline to refinance $5.4 billion of debt.
The group, which borrowed heavily last year to fund a rapid US expansion, is under pressure to sell assets to raise cash after being caught in the global credit crunch.
Centro, owner of 700 US malls, said refinancing talks were continuing with reports that banks are expected to grant a five-month extension.
The stock has dropped as low as A$0.23 after trading above A$10 in May 2007.
It had previously said its adviser, Lazard Carnegie Wylie, reported extensive interest from potential investors and it expected a number of parties to start due diligence soon.
About two-thirds of Centro's shopping centres are in the United States, with the remainder in Australia and New Zealand. It holds the assets through a complex network of managed funds.
Centro's main local bankers are Australia and New Zealand Banking Group Ltd , Commonwealth Bank of Australia Ltd , National Australia Bank and St. George Bank Ltd .
It also has US bank creditors including JP Morgan and Bank of
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
