supreme court reserves ruling on centro

I bought some more today on the drop couldn't resist a bargin in a falling market.

Cheers
Hotlegs

Supreme Court reserves ruling on Centro merger challenge

by: Sarah Danckert
From:The Australian
November 26, 201112:00AM

THE Supreme Court of NSW has reserved its ruling on whether the heavily indebted Centro empire can merge its various parts to create a $3 billion listed property trust.

Yesterday, Centro made a final plea for the courts to approve the company's merger plans, following a challenge to a key element of the merger from former company auditor and potential contingent creditor PwC.

At the heart of the issue is a $100 million package Centro has set aside for its junior lenders, shareholders and contingent creditors to facilitate the merger.

Centro is facing two separate class actions said to total about $600m arising from a $2.25bn misallocation of debt in its 2007 financial accounts.

PwC has been listed on those claims. It is also the subject of a cross-claim by Centro, and PwC is suing Centro.

As a successful claimant will become a contingent creditor, PwC has argued that the $10m of the $100m that the company planned to set aside for potential contingent creditors would not cover the claims.

PwC has sought amendment of the merger plans and says it does not necessarily want the entire scheme thrown out by the courts.

The court provided no guideline as to when the ruling would be handed down, despite a request from Centro that it be before December 1. Centro has set itself a very tight timetable to pull off its merger before almost $3bn in debt falls due in mid December.
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