Centro Property Group (Centro) shares plummeted a further 30 per cent to 60 cents yesterday after the troubled real estate firm's chief executive quit and it announced its current liabilities could rise further.
Centro, which admitted in December it was struggling to refinance $3.9 billion worth of debt, replaced chief executive Andrew Scott with the head of its US operations, Glenn Rufrano.
Scott, who will take home $3 million as part of his severance package, has been under fire since the group announced it was struggling to refinance debt because of the sub-prime crisis.
Centro owns 700 shopping centres in the US worth $17 billion.
Its shares fell 85 per cent in December and are now trading at just 60 cents. In May Centro's stock was worth $10.
Rufrano was previously chief executive of Centro US and joined the firm after it last year bought US real estate firm New Plan, where he was chief executive.
In a further statement to the Australian Securities Exchange (ASX) yesterday Centro admitted it could have understated the proportion of current liabilities it reported in June.
"Centro has initiated a review of its classification of current versus non-current liabilities in its audited 30 June 2007 accounts, as it now considers there is a prospect that the proportion of current liabilities may have been higher than reported," Centro said.
The firm also announced that its lenders were considering extending the February deadline when the $3.9 billion worth of debt is set to mature.
The statement to the ASX said Centro was in talks with its US noteholders, who are owed $450 million, after some feared the agreements had already gone into default.
Centro was at pains to stress it had not admitted the notes were in default.
Rufrano's salary and bonus package will be $3 million, plus 1 million Centro share options. The firm said Scott would remain to assist Centro as a consultant until March 31.
