not moving much either way of late, page-18

Thanks for the reply 618. Some very enlightening thoughts there. I still disagree however. The problem is indeed the debt ratio Centro have. It all comes back to the lowest demoniator with lenders. Does the company we are lending to have enough assets that we can sell off to cover the loan should they default. And the answer they must see is 'No'.

The asset and debt structure is very complex and that is why they are now having the issues they have in resolving what should have been a straight forward gearing problem.

I have heard or read a number of interviews (after the CNP rout) from competitors in respect to their short-term loan arrangements and all of them said that their company would not consider such a large amount on a short-term basis. The model CNP have employed is great for the good times but is very short-sighted for continued growth. It's a bit like traders using margin loans to multiply their profits more quickly. Simply put its a case of trying to grow too quickly without the groundwork in place.