The struggling Centro Properties Group (Centro) announced yesterday that it has been given a further deadline to refinance nearly $2.8 billion debt.
The Melbourne-based company has until December 15, 2008, to refinance the $2.3 billion it owes to Australian banks and $480 million to private American note holders.
Centro has agreed to provide security to its financiers including the Commonwealth Bank of Australia and St George Bank by giving them control of undisclosed assets.
The debt extension is also subject to additional conditions that are to be met by specific dates, the company said in a statement to the Australian Securities Exchange.
Centro must meet conditions including the completion of legal forms by its US entities by May 30, 2008.
Centro must satisfy its Australian lenders and American note holders that it is pushing ahead with asset sales and capital replenishment to cut debt by September 30, 2008.
By that date, Centro must also agree to extend a separate debt deadline on the $1.2 billion it owes to an undisclosed US lender by no earlier than 15 December.
The owner of malls from Blacktown in Sydney's west to Cheyenne in Wyoming confirmed in the statement that it is negotiating asset sales and is considering proposals for "recapitalisation and, or stabilisation of the group."
Specifically, a Centro spokesperson told InvestorDaily that the company was looking to sell parts of 28 properties within the Centro Australia Wholesale Fund, which is mainly made up of retail shopping centres.
Centro has also received offers for its Centro America Fund portfolio. It was unclear whether individual or a bulk of the fund's assets would be sold off.
The company was also working to simplify its business model, the statement said.
Centro also owes a further $1.3 billion to European banks including BNP Paribas and Royal Bank of Scotland by September 30.
