and last press report from me from the age...

TP Note: There ... that's enough press reporting from me for now; I don't want to hog the Forum, lol - but I might see what juicy bits are in the Financial Review later. - Pie
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Source: www.business.theage.com.au

Centro steps back from the brink
Eli Greenblat
May 9, 2008

CENTRO Properties Group has stepped back from the precipice after a minutes-to-midnight deal with creditors that will give the troubled shopping centre owner and manager until December 15 to sell assets and reduce debt.

The complex lending arrangement was required after German-based bank WestLB demanded more time to assess the loan and security documents fully. There were also fresh demands from Commonwealth Bank, which has a $1.1 billion exposure.

The extension yesterday is the fourth such move by Centro, after it convinced its creditors, a syndicate of local and overseas banks owed $7.4 billion, to push back their deadlines as the company pushed on with a restructure and strategic plan.

It was also revealed yesterday that of the six investors circling Centro with a possible recapitalisation plan, only three bids are being taken seriously. These bids range from a fresh injection of capital, giving the group a new cornerstone investor, to the purchase of some premium assets.

Centro's immediate debt of just over $2.7 billion to Australian and US investors was originally due earlier this year, but has now been extended to December 15.

However, to bring back a wavering WestLB into the camp, Centro has also forged another deadline of May 30, by which time an additional liquidity facility and inter-creditor arrangements need to be worked out.

Failure by Centro's creditors to agree on this package could lead to the whole December deadline falling over and placing Centro in the hands of liquidators.

Centro chief executive Glenn Rufrano was unavailable for comment last night.

He remains bunkered down in Centro's Melbourne headquarters as he strives to steer the struggling group away from collapse.

Mr Rufrano has presented a strategic plan to his creditors and the US lending group owed $US1.1 billion has confirmed its consent to an extension of US joint-venture facilities to September 30.

The US lending group, associated with Centro's joint venture with Centro Retail Trust, can refuse a further extension in September if it is not satisfied with Centro's progress.

The plan includes the sale of all or part of Centro's interests in two wholesale funds — Centro Australia Wholesale Fund and Centro America Fund. These have a book worth of $2.3 billion and $800 million respectively.

Trading in Centro and Centro Retail Group has been suspended since Wednesday.

The shares are expected to resume trading today.


Ends.

Cheers, Pie :-)