what might be happening

“announces a seven day interim extension on all
facilities expiring today in order to allow time for
the finalisation of discussions with all financiers
and he completion of documentation for a longer term
extension”

Based on the announcement and a few of today’s posts where the poster seems to have inside knowledge/contacts, it does appear that Centro does not have “all financiers” over the line. Discussions (negotiation) will continue until this is achieved and then the documentation will be finalised. Centro believes this can be achieved in seven days.

In this context, these are the possible scenarios (IMHO):

1. One or more financiers have not yet committed to the extension; they want better terms or security and this has delayed finalisation of the negotiations. Discussions are continuing with the financier(s);

2. All the relevant financiers have committed to the extension, but Centro is not happy with the terms and is seeking to negotiate a better outcome;

3. The financiers have already agreed to a five-month extension, but Centro wants a twelve-month extension and one or more financiers have to be convinced to do this. One or more of the financiers might want security of the extended loan.

4. The financiers are happy to agree to the twelve-month extension if Centro can pay down some of the loan balances. Centro need more time to convince the financiers that it can do this shortly via some asset sales.

5. One of the financiers does not want to agree to the extension unless Centro will provide security or reduce its loan balance from the proceeds of an asset sale. Centro is negotiating with the other financiers to payout the reluctant financier. More time is needed to finalise the documentation.

There are many other possible scenarios, but my best guess is that either one financier is not singing from the same hymn sheet or they are all on board for a five-month extension but Centro is negotiating for a twelve month-extension in order to allow more time for an orderly capitalization process.

This is all guess work and should be taken as such.