west lb may be centro holdout...

Source: www.businessspecator.com.au

WestLB may be Centro holdout
By staff reporters
6:28 AM | May 3, 2008

Troubled German bank WestLB is believed to be the “local” lender that is holding out on approving Centro Properties Group’s request for a five month extension to refinance its domestic debt, The Australian Financial Review reports.

WestLB is said to be resisting the extension as it deals with its own debt issues that have already resulted in the German government pumping $8.3 billion in to company to prop it up, the paper’s Chanticleer column reported.

This week Centro Properties Group revealed that only one local lender, owed less that $200 million, was yet to agree to the September 30 extension.

The single holdout was revealed as Centro continues its negotiations with lenders to refinance $2.3 billion in local debt and $505 million owed to US private placement note-holders.

Apart from WestLB and possibly BNP Paribas, Centro’s Australian creditors have a solid security levels. However, the majority of that security is understood related to property syndicates rather than corporates, the paper reported.

Centro’s US lenders, owed $1.3 billion, have already agreed to the September 30 deadline, provided all of Centro’s Australian backers approved the deal.

Centro secured a temporary seven day extension on its local and US private placement debt, although this could be extended if Centro can agree terms with the remaining lender.

Centro's main local bankers are Australia and New Zealand Banking Group Ltd, Commonwealth Bank of Australia Ltd, National Australia Bank and St George Bank Ltd.

Its US creditors include JP Morgan and Bank of America.


Ends.

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