rights issue

Centro Considers Rights Offer to Satisfy Lenders, Review Says

By Jacob Greber

Jan. 14 (Bloomberg) -- Centro Properties Group may sell shares through a rights offer to raise funds before a Feb. 15 refinancing deadline, the Australian Financial Review reported, without saying where it got the information.

Banks want new capital brought into the business before the deadline, the newspaper reported. The rights offer recommendation is part of a strategic review of the business by Lazard Carnegie Wylie, the Review said.

The share sale might face challenges such as finding a cornerstone investor and an underwriter to provide confidence, the newspaper said.

Centro shares have plunged 85 percent since the company said Dec. 13 it is struggling to refinance A$3.9 billion ($3.5 billion) in debt because of the collapse of the U.S. subprime housing market.

To contact the reporter for this story: Jacob Greber in Sydney at [email protected]

Last Updated: January 13, 2008 16:08 EST