If SuperLLC falls over, the liability CER has is 'ringfenced' and will account for about (from memory) 67c NTA per share.
CNP does not have this ringfenced liability. In fact, CNP has a $1.7bn guarantee on the SuperLLC debt. Lenders can reach out to the CNP balance sheet if SuperLLC falls over, they cannot do this with CER.
In my opinion, getting to grips with this point and other aspects of the CER business is what has caused value investors to put big money into CER but stay away from CNP.
It is the investors who don't understand this point that bail as soon as there is a suggestion that CNP is in (more) trouble. If CNP falls over because of the SuperLLC situation, CER probably won't fall with it.
CER Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
