They are wasting ppl's time, the legal action has no foundation as in accounting rules the debt was disclosed and although some was termed non-current, there was (in managements view) every possibility at that time that the soon-to-be-current debt proportion would have been refinanced in the short term - hence their view that the debt was non-current.
The issue of whether or not Centro mislead SH, if found to be "true" might pull their auditors into the action, for not picking it up in the accounts in the first place.
In my view the whole action is a witch hunt and will only hurt CNP's recovery - but let them sue - if it fails (as I believe it will), Centro will be vindicated and be the stronger for it.
One point though, legal actions take time and Centro might be out of danger by then, so legal action hanging over a recovered Centro may still impact its sp and market sentiment.
CNP Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Not Held
