Very good comment. The banks have negotiated a very profitable deal with the D4E swap. So profitable though that there is the opportunity for another lender to come in (before the D4E is approved by security holders) and undercut them ie take over the whole debt at only slightly better terms and still make a killing. One key factor I thought was stopping another lender coming in was whether there was a lender with the cash ($4b wasnt it or was the whole debt $18+b - ote sue of the total figure) to loan. Now with LIBOR down, liquidiity in the system, growth signs, asset price stability emerging then there has to be an alternative lender. If so competition returns to the lending situation for Centro. Some other bank(s) have got to see the massive opportunity - even one of the current lenders (but ?would they be better off having the status quo ie D4E going ahead).
If no D4E, then large potential for gain for holders.
CNP Price at posting:
37.5¢ Sentiment: Hold Disclosure: Held
