There is an extremely small chance IMO that CNP will be put into administration. I can see a debt for equity swap eventuating for CNP
Don't be so sure of that. Debit for equity swap has never been achieved on the scale required for Centro to survive.
There is Much concern regarding debit for equity swap in regards to the two law suits. Basically the banks can't be assured that they will get first pickings at assets if they do go into administration after a debit for equity swap. This is a major stumbling block.
Lets face it where seeing much bigger players then Centro going down atm. While banks won't want to lose on Centro by sending them into administration. It maybe worse if they allow a debit for equity then the company still gets taken down by the lawsuits currently running.
Its difficult times to me it seems banks will take the most secure and low risk option. Either way they could stand to lose alot of $$ as could we all.
BTW my predictions only stand for CNP I believe CER will be in a much better position. Most people Lump Centro into one I think CNP and CER are TOTALLY different entities. The gearing of CER is much better. I believe it is possible Banks may just outright lend the money to CER to keep it going as debit levels are much lower.
I'm still confused why the idea of cutting SuperLLC loose hasn't been floated. Most of the problems for CNP seem to be with SuperLLC. Put simply CNP owe more on their share of SUPER LLC then its worth. This has massive ramifications. Makes a sale very hard.
CER Price at posting:
8.5¢ Sentiment: Buy Disclosure: Held
