The risk to CER is that the lending groups do not want to(or cannot) lend money to them again and CER cannot find alternative lenders. It does not seem to be whether or not CER can cover their debts because this does not seem to be an issue.
Operationally CER has done well, although having 10% of space empty is not great, at least there will be upside when things turn around.
In the US there is a mountain of debt to be rolled over, over the next 2 years. That is what is scaring everyone. Once CER says we have rolled over some debt for another 5 years then there will be certainty.
CER had a target of selling $US400 of property. This was probably agreed to with their bankers. So there is some way to go. Once this is reached we will hopefully see some real movement in share price.
CER Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
