CNP (ASX) hope for centro investors: rufrano...

Source: www.businessspectator.com.au

Hope for Centro investors: Rufrano
By a staff reporter
6:39 PM, 9 May 2008

The embattled CEO of Centro Properties Group says shareholders in the troubled firm could still gain from a debt deal negotiated with lenders.

In an exclusive KGB Interrogation, Glenn Rufrano, imported from the United States to save the firm, said he was confident equity holders would benefit after a new repayment plan was forged with banks this week.

"I’ve been fairly confident that as long as we had the time to execute and if our financing group allowed us to have the stability to execute our plan. I believe what happened this week puts us one notch higher in that probability," Mr Rufrano told Alan Kohler, Robert Gottliebsen and Stephen Bartholomeusz.

Shareholders today launched a class action against Centro in the Federal Court, compounding doubts among analysts that the new plan would be honoured.

On Thursday, Mr Rufrano confirmed a deal with domestic and international banks to get a seven-month extension on $2.8 billion of debt now due on December 15, pending an interim assessment before the end of the month.

Mr Rufrano disputed the doubt surrounding the deal, arguing that there was a compelling logic behind working with the banks to achieve an acceptable outcome.

"The logic is that it is much better for the banks and Centro to work together longer term than not. And that logic holds as long as we at Centro are doing our jobs and managing and leasing and running the funds management business properly," he said.

Mr Rufrano also said he is enjoying the role, despite a demanding workload in dealing with the banks since being appointed last April.

"In terms of the job and the position, knowing a bit about Centro – I’d been here since last April – I expected that it would be a complicated situation.

"The intensity has probably been greater than I thought because the coordination across continents and the 14 hour or 16 hour time difference...but I don’t think there are enough surprises either in the geographic move or the job itself that would disturb me."

Ends.

Cheers, Pie :-)