CentroGroup, one of Australia's highest profile casualties of the global credit crisis, was given a lifeline on Tuesday when lenders agreed to refinance $4.65 billion in overdue debt.
Without the refinancing, Centro could have been forced into administration by its creditors, potentially triggering a fire sale ofproperties in the United States, Australia and New Zealand.
"This outcome will stabilise Centro and provide sufficient liquidity with time for the company to maximise the value of its property operating platform and funds management business," Centro Chief Executive Glenn Rufrano told reporters during a teleconference.
Centro's Australian lenders have agreed to swap A$1.05 billion ($697 million) in debt for convertible bonds, worth 13-14 cents per Centro security, or roughly a 50 percent premium to Centro's last trade.
Past links and stories:
- December 3, 2008, Centro, GGP Find Ways to Hang On
- September 29, 2008, Centro Scores Loan Extension
- September 15, 2008, Centro's Deal Collapses
- September 10, 2008, Centro Cancels Mall Sale
- August 21, 2008, Centro Posts $299M Loss
- July 16, 2008, Centro Clears Minor Hurdle With First Asset Sale
- July 1, 2008, Centro to Sell Five Australian Malls
- May 29, 2008, Report: Centro Close to Big Sale
- May 14, 2008, Centro's Shield
- May 9, 2008, Centro Reaches Debt Agreement, Shares Surge
- April 3, 2008, Centro Takeover Rumors Cause Share Surge
- April 1, 2008, Centro Clears a Hurdle
- Feb. 29, 2008, Report: Blackstone, GE, Mulpha, Mirvac Bidding for Centro.
- Feb. 28, 2008, Centro Shares Surge
- Feb. 15, 2008, Centro Wins Extension
- Jan. 15, 2008, Scott Out, Rufrano In at Centro
- Jan. 10, 2008, Daily Centro Update
- Jan. 9, 2008, UBS Cuts Stake in Centro
- Jan. 3, 2008, Centro: Morgan Stanley, Westfield Have Approached Firm
- Jan. 2, 2008, Centro Says Its Getting Offers
- Dec. 18, 2007, Another Round of Centro Coverage
- Dec. 17, 2007, Centro Hit by Credit Crunch