extension granted by the lenders including the bond holders. Think for a minute what that means..... more to be gained by keeping Centro afloat due to strong cash flows and sought after investments.
recall from a previous post
"let's look at the banks assets if centro is kept afloat
**Australian banks have lent Centro $3.5 billion unsecured... please note this is unsecured thus any quick sale of Centro will equal big losses for the banks!!!
**$5 billion of value of Centro Properties lies in the management contracts which would be lost to the banks in a firesale.
** with a lowering of debt and the stable income that Centro offers the banks are not likely to throw away the keys just yet, imho. In fact a flood of money should pour into Centro if the debt is refinanced and the banks and super funds hungry for lower debt and stable income know this.
shoot me down if you wish but that's the way i see it."
6 analysts as reported by the FT gave the following estimates on approval of extension
high estimate of $3.67 low estimate of $104.0 median estimate of $1.18
Obviously there will be waves of buying and selling and these prices may take a few days to be reached but, imho, i dont see $1.18 being much of a hurdle in the short term.
CNP Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
