short trem speculation, page-28

Buffet and all others..here is the post by gaz post #3508096 thanks to gaz....

I see the 80% dilution as follows;

Net Tangible assets of CNP 620000000 = $0.69/share

Intangable number (Goodwill) $0.00

Value of Service Business to CNP $2,000,000,000.00 = $2.23/share

Total share price $2.92

Company worth based on current 896421000 shares $2,620,000,000.00

Debt to Equity amount $4,000,000,000.00

Company worth after Debt for Equity $6,620,000,000.00

No. of new shares required $4,000,000,000.00 ($1/share)

Total amount of shares on issue after re-captilisation $4,896,421,000.00

New share price based on company worth divided by 4,896,421,000 Shares $1.35

Centro's existing shareholder percentage of new company worth 18.31% or $1,211,968,296.84 or $1.35/share

Debt to Equity percentage of new company worth 81.69% or $5,408,031,703.16 or $1.35/share

This model represents a hefty dilution for existing shareholders, but I would much prefer this versus administration.

It also gives a very good premium for the equity investor to make it worth there while.

The 4 billion paid off debt should bring the LVR down to approx. 54%.

All we need now each of the 24 lenders to convert 166 million of unsecured debt to equity.