lay off the sauce and the cubans, page-21

Octain, you really don't get it do you?

Centro's underlying business is sound and profitable. It generates cashflow to make interest payments and they are not in default with their debt.

They booked an unrealised loss due to writing down the value of their properties. This is an accounting excercise and does not affect their ability to service their debt.

Relate it to a residential mortgagee. As long as they make their mortgage payments the banks should be happy, regardless of whether their house value falls. If it falls you could say they made an accounting loss. This doesn't mean the bank should foreclose.

Get it now?

cosmos