Got your attention! It is a quote from the the Chairman, read below. The last paragraph does have a positive tone to it as well, usually CC ends with a negative.
Centro takes first step to simplify structure * Carolyn Cummins Commercial Property Editor * October 18, 2008
IN A first step towards simplifying its structure, Centro Properties has appointed new independent directors to replace board members who are retiring. The move is a precursor to separating its business units.
The group chairman, Paul Cooper, said yesterday the move was an important part of making Centro a much easier business to run, as it worked towards extending its deadlines with its bankers from December 15 to avoid being put into administration.
Criticism of Centro has focused on its highly interdependent company structure and its complex operations - which include its management arm, the listed Centro Retail Trust; its unlisted diversified vehicles; the joint venture in the United States known as Centro NP LLC; and its satellite Centro MCS syndicate businesses.
As part of the changes, Rob Wylie, 58, joins the board as a non-executive director of Centro Properties. His previous roles include chairman and chief executive of the Australian arm of Deloitte as well being on the global board and governance committee of Deloitte Touche Tohmatsu and the global board of Deloitte Consulting.
Avin Lieberman, 37, joins Centro Retail Trust as a non-executive director.
Mr Wylie and Mr Lieberman will replace the former Centro directors Peter Wilkinson and Sam Kavourakis, who have resigned as part of the renewal of the two boards.
Earlier this month Centro also revealed that Ross Johnston had resigned as head of strategy implementation.
Mr Wylie's "considerable audit and governance experience will complement the expertise to the board", Mr Cooper said.
In the group's annual report this year Mr Cooper, who joined the board on June 13 to replace long-term chairman Brian Healey, said Centro continued to face challenges.
"The immediate imperatives are to secure a longer term extension of our banking facilities beyond December 15, 2008, to stabilise our financial position." After that it must progressively "reduce debt levels and improve free cash flows; simplify our group structure and reduce inter-dependencies throughout the group", he said.
"Centro must also implement new governance structures and processes that enable all of our stakeholders to have greater confidence that actual or perceived conflicts of interests are being recognised and are being avoided or managed appropriately and transparently; and defend the class action litigation Centro faces."
Centro is talking to its bankers to extend the deadline to repay the first tranche of its $4.5 billion debt from December 15 for at least a year. If successful, its management - led by the chief executive, Glenn Rufrano - will consider issuing hybrid notes to the financiers and where possible raise capital through asset sales.
CNP Price at posting:
7.2¢ Sentiment: Buy Disclosure: Held
