re pg22 of todays austrlian, page-55

I think there are quite a few similarities in AFG and CNP.

1. CNP acknowledges that it cannot run unless there is debt for equity swap or equity injection as it doesn't have money for capital works after paying interest.
AFG was in the same situation and wa dependent on more debts to run the business.
2.AFG was given extension on the terms that they keep reducing debts monthly (that is other than paying interest.
CNP has no such terms but the extension itself is pending. May be lenders may come out with such terms.
3. Asset sale was difficult for AFG so is the asset sale for CNP.
4.AFG's recent extension converted most of the debt to secure debt, CNP's debt also will be mostly secured after 6month period from last extension , that is 30th Nov08. That is when banks are more secured and may not hesitate to pull the pin.

All said and done, I still think if Centro collapses , it will affect the entire REIT and our economy. I am sure CBA will be too selfish in Centro's case but who knows.