Read paragraph that states this deal will allow allow them to...

Read paragraph that states this deal will allow allow them to push on with the amalgamation of Centro Properties Group and Centro Retail Group with or without stakeholder consent.



http://www.theaustralian.com.au/business/opinion/stay-tuned-for-another-episode-of-cvc-saga/story-fn7rgef9-1226130921165

Centro looking for the eisa way out

AS the NSW Supreme Court prepares for the first hearing on September 20 to approve the proposed scheme of arrangement for the $3 billion debt-for-equity swap that will merge all of Centro's funds into one listed company, shareholders and hybrid securityholders are expected to step up their campaign for a bigger slice of the pie. Under the proposal, Centro shareholders and hybrid securityholders have to share $100 million between them as part of the property group's rescue restructure. But the hybrid holders, including JPMorgan and Royal Bank of Scotland, are agitating for a bigger chunk.

Don't be surprised to see the hybrid holders intensify their efforts from the first court hearing, although Centro's senior lenders have organised a "pre-pack credit bid", which will allow them to push on with the amalgamation of Centro Properties Group and Centro Retail Group with or without stakeholder consent.

Essentially, it would see the Centro Properties Group handed over to the administrators and receivers before it is taken over by Centro Retail Group, achieving the same result the lenders agreed to in March.

While some observers have raised questions over how receivers can sell the company to lenders without testing the market, it's understood the fact the deal has already been agreed will play in the lenders' and receivers' favour. It's worth noting, though, that it's thought there's only been one such successful "pre-pack" in recent Australian corporate history -- the sale of internet service provider eisa more than a decade ago.