updates not positive, page-12

I can't decide whether this sale is positive or not.

The company has stated several times that asset sales alone are not sufficient.

They need an equity injection.

Given that no agreement could be reached with outside investors it really depends on whether the banks are willing to do the debt for equity swap or whether they simply want their money back.

In a bull market the banks would probably put the company into administration and realise strong prices for assets. No need to get involved in a debt for equity swap.

But I was beginning to wonder if a lack of sales was actually good for Centro because it sent a loud message to the banks that firesales would be disastrous for realising value.

I really don't think this sale will mean much for the company.

In my opinoin it's survival depends on whether all the banks are prepared or have the capacity to support the company through a long recovery process.