It should be noted that although SuperLLC is contributing 0c NTA to CERs overall NTA and no cashflow to CER due to the lockdown in profits until Dec 2010, according to page 11 of the presentation, CER's stake in SuperLLC generated net profit of US$65m.... In AUD terms this is obviously much higher.
How something can be assigned zero value to the company yet be generating significant profits to the company is mind boggling. Post Dec 2010, it is highly likely that financiers will allow some profits from SuperLLC to be distributed to its shareholders (CNP, CER) similar to the arrangement that CER and its CSF financiers entered into.
The purpose of the stabilisation plan was to provide mainly SuperLLC with life support until economic conditions improve. In the meantime CNP and CER will continue to make the required interest payments and pay down principal if possible.
Although Super is not showing up on CER's books, it still is a monster hibernating that will be of significant value to CER once it awakes.
Cheers
CER Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
