1. centro signed an agreement with banks to borrow Billions and promised to hand the money back on a given date.
2. The banks did not insert a clause which said that they would only get the money back if Centro could roll it over.
3. The agreement states that money is due back on a given date.
4.Last year in December it became clear that Centro could not repay the outstanding monies when due.
5. The banks wanted out as the transaction was now more risky than before.
6.Centro was in default as it could not meet the original agreeemnt.
7. The negotiated an extension but then failed to meet that deadline. Another default, sorry.
8. The banks agreed yet another extension. i suspect that on the third strike thay will be out and the bank will be very much in the clear on any ensuing legal battle.
9. When the bank bends over backwards to help a customer who is unable to meet their contractual obligations, its a bit hard for them to be condemned later.
10. Play semantics if you must but understand that when a company is unable to meet their obligations when they fall due, they are totally in the hands of their bankers, who have every right to call in the debt.
11. Your shining light in Centro has a $2.8b problem by 30/4.
12. What are the chances that they will fix it in time? See the market reaction for their verdict.
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
