cer and cnp . try this for size., page-3

Nursery,

"CNP holds about 50% of CER" ...True currently.

BUT...after this deal (and before the amalgamation) I tend to agree with Bartholomeusz that CNP has agreed with "73 per cent of its senior debt holders to cancel all of its debt in exchange for most of its Australian assets, including its direct property interests, its interests in its wholesale funds and its interest in CER".
Most notably its interest in CER.
I am thinking that all that would be left in the CNP shell will be $100m and absolutely nothing else (exscept the legal liablility for the class action)...no other assets, not even the interest/shares in CER.
So the 51% interest held in CER will go to the senior lenders...at least its a group of holders rather than CNP as one big influential holder.

The question remains for me...(and I havent been a holder for a while)
...is whether the loss of all the upside from SuperLLC is legal and within the bounds of the agreement to cover CNP negative equity in SuperLLC?? If CNP has received a benefit from the sale of CNP such that its debt is wiped out then maybe its equity in SuperLLC is, at some time point in the deal, not entirely lost wihc means that the impairment by CER is, at some time point in the deal, not required...and so the equity position for CER should be realisiable.
I was never very clear about the whole Super LLC BUT it doesn't make sense to me that CNP can come out this almost square (well with $100 million cash) when it's NTA was negative $1.6B or so. Sure there were the intagibles that might be worth something ut note that much. I smell a rat...and some it is coming form SuperLLC and the CER impairment.
Maybe it's not all over yet!!
TS



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