You would think the rumoured CBA stabilisation plan could infer a longer extension possibly of 3-5 years... this would be a great outcome if it were to happen. With such extension, would GR still be looking at D2E swap, or could such a plan allow centro to trade at net worth (including services business value) in which case a share capital raising could then occur?
ie. What if a D2E isn't required at all, you would think the big players would reconsider taking positions - especially then as no assets on the market at fire sale prices. Can't beat em, join em.
Guess it depends on what the lenders would prefer, if they want to be paid back (and a lower LVR) then they have to give centro favourable extension in order for centro to be considered stable as a going concern. Otherwise, they have to do a D2E which would have to be favourable to shareholders in order for them to approve.
We are all in the dark at this stage though. Am very confident though that GR is the man for the job, if anyone can do it we have the right person on our side.
CNP Price at posting:
8.7¢ Sentiment: Hold Disclosure: Held
