Sunday, May 18, 2008

Debt-ridden Centro gets 7-day extension

TROUBLED Centro Properties Group has received a seven-day refinancing extension on its $2.3 billion debt owed to its Australian lenders.

The extension was to allow for "the finalisation of discussions with all financiers and the completion of documentation for a longer term extension", the company told investors.

Shares were in a trading halt today pending an announcement from the company after it reached its refinancing deadline today.

The interim extension expires on May 7.

The retail property trust owes $5.4 billion worth of debt in total, including debt owed to both US financiers and private noteholders.

Centro ran into trouble after it borrowed heavily last year to fund its expansion into the US and has since contended with the global credit crunch.


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