no extension

Most of the comments surrounding the extension of debt suggest that it is clearly in the banks interest to extend the debt. The speculation is that sending Centro into administration and forcing a firesale of assets would result in big losses for the banks and therefore they will extend.

But I now wonder if, given the massive liquidity problems facing banks around the world, the banks simply can't extend the debt because they have absolutely no liquidity and no capital.

Perhaps they need capital, any capital, at any costs.

??