rufrano explains to the age

The following is Rufrano's letter to The Age today.


Letters, Business Day, The Age, 20 Feb 2008

Centro's debt position has been greatly exaggerated

The headline in Monday's BusinessDay, "Centro sinks $1.5bn deeper in debt" is incorrect. I am concerned that this statement has caused undue concern among the group's investors.
To clarify, Centro's overall debt position in the June 30, 2007, audit was correct, as was the position included in Centro's announcement on December 17, 2007. It is the split of this debt into current and non-current classifications that Centro expects to be restated. Specifically, Centro has announced that the total amount of debt outlined in the June 30, 2007, audited accounts of $3.6 billion remains unchanged. However, as a result of a review into its audited accounts, Centro expects an additional $1.5 billion of interest-bearing liabilities, which were previously classified as non-current, to be reclassified as current.
The increase in the amounts under the extension of financing arrangements is due to the passage of time where some debt due between February 15, 2008 and April 30, 2008, has been added to the extension arrangements. Again, this is not additional debt.
In the current volatile market, Centro is doing its utmost to improve its debt position and, furthermore, to improve transparency around the current financial difficulties that the company faces.

Glenn Rufrano,
chief executive,
Centro Properties Group