Centro up and trading

CENTRO Retail Australia shares began trading yesterday after Centro Properties Group shareholders and lenders agreed to wipe out $2.9 billion of debt, allowing the creation of the new entity.

By InvestSMART · 6 Dec 2011

By InvestSMART ·
6 Dec 2011

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CENTRO Retail Australia shares began trading yesterday after Centro Properties Group shareholders and lenders agreed to wipe out $2.9 billion of debt, allowing the creation of the new entity.

Centro Retail shares closed at $1.74, valuing the 1.34 billion of quoted securities at $2.3 billion. The benchmark S&P/ASX 200 Index rose 0.8 per cent.

Centro first announced a planned restructuring in 2009 after a debt-fuelled US buying spree backfired with the global financial crisis.

Share and debt holders of Centro Properties and listed unit Centro Retail Trust approved a proposal last month to give lenders control of the new Centro Retail Australia trust in exchange for forgiving debt.

The reorganisation has been approved by the New South Wales Supreme Court.

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Frequently Asked Questions about this Article…

What happened when Centro Retail Australia shares began trading?

Centro Retail Australia shares began trading after Centro Properties Group shareholders and lenders agreed to wipe out $2.9 billion of debt, enabling the creation of the new Centro Retail Australia entity.

How much debt was wiped out in the Centro Properties Group restructuring?

Shareholders and lenders agreed to wipe out $2.9 billion of debt as part of the deal that created the new Centro Retail Australia.

What was Centro Retail Australia’s closing share price and market valuation on the first day of trading?

Centro Retail shares closed at $1.74, valuing the 1.34 billion quoted securities at about $2.3 billion.

How did the broader market respond on the day Centro Retail started trading?

On the same day Centro Retail started trading, the S&P/ASX 200 benchmark index rose 0.8 percent.

Why did Centro first announce a planned restructuring in 2009?

Centro first announced a planned restructuring in 2009 after a debt-fuelled US buying spree backfired during the global financial crisis.

What did shareholders and debt holders approve in the proposal that led to the new Centro Retail Australia?

Share and debt holders of Centro Properties and the listed unit Centro Retail Trust approved a proposal to give lenders control of the new Centro Retail Australia trust in exchange for forgiving debt.

Which court approved the Centro reorganisation?

The reorganisation was approved by the New South Wales Supreme Court.

What are the key timeline milestones investors should know about the Centro restructure?

Key milestones in the Centro restructure: the planned restructuring was first announced in 2009, shareholders and lenders approved the recent proposal last month to create the new entity, the New South Wales Supreme Court approved the reorganisation, and Centro Retail Australia shares began trading yesterday.