cnp agrees stabilisation plan with financiers

Well ... I have just arrived home to find the announcement we have all been waiting for sitting on my doorstep.

Here are a few points in brief I would like to make:-

Effectively it looks as though we have a one (1) month 'interim' extension to sort out the paperwork.

It was great to read that Centro are lowering their loan ratio by way of Convertible Bonds (which is a probability I had thought of actually).

So, the balance of the Oz debt is to be refinanced for three (3) years - subject to agreement.

In the meantime back to limbo-land for another 4 weeks while we dot the I's and cross the T's.

This seems like a workable mix of a deal. Theoretically it gives assurety and continuance of business, a stable platform to work around and a lower loan ratio which should mean lower repayments - all for a little (?) dilution potentially.

On the negative side, the Company will be diluted possibly ~15% with no dividends for 3 years either - most other negatives are well known .


A Question: If the interest is capitalised in this context, does this mean that the meter is still running for the Banks???

Cheers, Pie :)