News: Centro seeks extension to pay off debt. AAP 30/03/2008 1:35p Compare Shares
If that has been posted before, sorry.
Troubled Centro Properties Group Ltd is hoping for a six-month extension from its April 30 deadline to refinance $2.3 billion in debt to its Australian lenders.
It is understood that all eight of Centro's Australian lenders agree the best way forward is to extend the April 30 deadline to September 30, giving Centro more time to repay its Australian-based debt. However, no formal agreement has been reached.
If a formal extension is given, it would bring all of Centro's $5.4 billion worth of debt, including debt owed to both US financiers and private note holders, to a September 30 deadline.
AAP understands that with several hurdles yet to be negotiated, an extension deal is not likely to be reached until the second half of April.
It is believed that the bankers do not want a fire sale of Centro's assets, due to their high quality.
Centro's new chief executive, Glenn Rufrano, has previously said he does not want to offload assets, but would prefer to receive an equity injection to help pay down part of Centro's debt obligations.
Mr Rufrano is currently mulling over offers for Centro's equity stake in two wholesale investment funds.
Centro said it was pleased with the positive comments made by bank representatives.
"This reinforces our previous statements that our underlying business is sound and that the banks are working with us on that basis," a spokesperson said.
"While the Australian banks have not formally extended Centro's financing deadline beyond April 30, they have begun work on the extension."
At a meeting last week in California, all creditors met and were pleased by the performance update given by Centro on its US operations.
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