Ok, banks that hold Centro debt , may be looking for the easiest...

Ok, banks that hold Centro debt , may be looking for the easiest 'out'clause atm ,and could let CNP fold , and write it down in this term [last quarters figures]. Good thing is that markets will factor in lower earnings ,or larger losses, due to market turbulance of late, and the Centro loss could be absorbed into the bad quarters financials. Therefore , the loss will have minimal impact on SP, therfore saving a lot of 'face' in the market . Those financials with secured loans will have some control over some assets, which can now become income positive, and appear as this on next years balance sheet, making the books appear better. Read ANZ' post on cds' , and how they use the difference as 'income', and this can appear similar in process.
I watch only CNP charts , so have no real idea about it's financials , so am merely summising , but it is a valid theory when considering why a bank would not extend terms of credit. Hope that helped?? ;]