The banks wouldn't offer long-term loan arrangements before when CNP was flying for that sort of money, why would they offer 5 years now? And yes the banks directive is they have to sell assets. They are not willing to lend so much to CNP under these market conditions and with the high percentage of borrowings.
This credit crunch issue isnt just going to go away because the US have bailed out a couple of big lenders. The problem is inherent and will take quite a while to address. Expect more bank wirte-downs.
CNP Price at posting:
11.0¢ Sentiment: None Disclosure: Not Held
