court approves deal

Centro restructure plan approved by NSW Supreme CourtPublished 2:47 PM, 1 Dec 2011 Last update 2:55 PM, 1 Dec 2011



The NSW Supreme Court has approved the $7 billion restructure of beleaguered property company Centro, according to a report by the Australian Financial Review.

However, former auditor PwC is attempting to win a stay until 11am Friday to allow it time to review its options, the AFR report said.

Last week securityholders approved the company's amalgamation plans, which will see Centro Retail Group (CER) and Centro Properties Group (CNP) combine to create a new listed Australian retail property trust called Centro Retail Australia.

That approval was one of nine given to the deal during nine separate meetings for shareholders and creditors held in the past week.

The deal aims to combine the two companies so that Centro Properties, which has negative net equity, can be wound-up after the amalgamation with the much stronger Centro Retail Group.

The new company will control $4.4 billion in Australian shopping centres and manage another $2.6 billion worth of retail assets held in its investor syndicates, according to the AFR.

The court decision marks the near-conclusion of a four year effort by Centro to restructure.