banks have indicated that they WILL refinance the loans if gearing level LOWERED. They don't need to eliminate ALL their debt, just some. Rufrano has indicated lots of interest in the Centro Australia and American wholesale funds and is reviewing the offers. CNP's shopping centres last year had operating profit $150M. Losses were due to write downs, not operational problems. As Rufrano has stated, " CNP does NOT have operational problems, it has a balance sheet ( gearing ) problem". Don't forget they were paying 35 cps! dividends last year, and is still earning that much in operational profits but using it to pay back debt interest rather than giving to shareholders. Once gearing lowered by some asset sales, the banks have indicated they are willing to refinance loans, and there will be plenty of assets left over to allow restart payment of dividends, obviously not 35cps, but maybe half as much. what share price for a company paying say 15 - 20 cps dividends - certainly a lot more than the current SP IMO. The banks have an alternative - force a crash sale of assets during a propert market downturn and thus lose hundreds of millions or billions of dollars. Much of their debts are UNSECURED. I doubt the banks would be that silly.
CNP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
