debt refinancing , page-4

EXACTLY NOWORRIES !!!
It is a common misconception that Centro have to get rid
of their debt by Dec.
Rufrano has indicated that the banks are willing to refinance their loans if they can lower their gearing to an "acceptable level"- my guess is <50%.
All companies make use of debt to finance their growth, and noone expects Centro to be on zero gearing level. Plenty of companies have gearing levels over 50%.
They only need to sell maybe $1 B in property and the banks should refinance their loans. Shopping centres are highly profitable assets especially supermarket based ones.
Last financial year Centro posted operational profits of $150 M. Reported losses due to asset writedowns.
As Rufrano said " Centro does NOT have an operational problem, it has a balance sheet ( overgearing ) problem".