Hi defabI'm not entirely sure cnp/cer would of had a choice in...

Hi defab

I'm not entirely sure cnp/cer would of had a choice in the matter. I've suspected for a while that the hedge fiasco was more to do with borrowing equity than anything else.Where do you think cnp would be if they were unable to borrowed some of cer's equity,and how would the banks justify there own balance sheets.If it wasn't for the lastest round of write downs this wouldn't have been an issue.

So while the good cer holders have been helping cnp and the banks what have they done for cer.
Restricted income
Restricted distributions
Force property sales (at the bottom of the market)
Refinanced loans with favourable terms for them
Didn't inject capital into supperllc which wiped out cer's equity.
And probably worst of all made it so cer couldn't raise capital and tell the banks to shove it.

Here are a few good questions for the agm

Do cer intend to put management contracts out for tender in the future.

What are their intensions with supperllc(this is probably the biggest question because if they intend on punting it at the bottom of the market you have all been going through the ringer for nothing)if the answer is yes then they should seperate it now which will reduce lvr and they can get back to business as normal.Maybe they can offer it to settle the class actions,just give it to them.


The longer this whole thing drags out,in trying to restore equity you are all missing out on distrbutions and in the long run the lost distributions may amount to more than the equity that is trying to be presurved and restored.


cheers k8sy