Further to my post earlier, everyone should have a read of Note...

Further to my post earlier, everyone should have a read of Note 25 in the annual report. Pg 83

25. EXPOSURE TO CENTRO
PROPERTIES GROUP

CER has the following balances to which CNP is a
counterparty and which could have a material impact
on CER in the event that CNP was unable to meet its
obligations:

(a) CER has a gross investment of $635 million in Super
LLC (2008: $967 million), a joint venture with CNP
and Centro MCS 40. CER is exposed to the extent of
CNP’s negative equity in Super LLC, which exceeds
the value of CER’s investment in Super LLC, by
virtue of cross collateralisation arrangements. CER is
indemnified by the other Super LLC shareholders for
any losses suffered as a consequence of the cross
collateralisation arrangements. Despite this, because
the indemnification has been provided by entities
whose only assets are their investment in Super
LLC, CER has elected to make the provision for non
recovery of this investment totalling $635 million
(2008: $317 million).

CER has no further exposure to Super LLC as the 30
June 2009 carrying value of this investment is nil after
taking into account the provision.


(b) CER has interest bearing liabilities payable to CNP
of $111 million (2008: $132 million). CER also holds
derivative financial instruments and other financial
liabilities to which CNP is the counterparty. As
at 30 June 2009, the fair value of these financial
instruments and other financial liabilities (excluding
interest bearing liabilities) was $375 million in favour
of CNP (2008: $233 million in favour of CER).