Commonwealth Bank - rather than the previously demonised WestLB - has copped plenty of apparently informed, and pointed, commentary yesterday and this morning over its role in the drawn out negotiations over extending terms (and extending one additional loan to) the Centro Properties Group.
The Australian's columnist John Durie reported that Rod Eddington, the chair of JP Morgan in Australia (and the largest lender to Centro) had to resolve final terms for the standstill agreement with Ralph Norris, chief executive of Commonwealth Bank, on Wednesday night.
According to Durie CBA wanted more security from Centro, as part of a financing package that includes an additional working capital facility of around $100 million (and on top of combined group facilities in the management company and the property trusts in the order of $5 billion).
Centro and its banks have been seeking to renegotiate terms, and defer repayments otherwise now due, since December.
Stephen Bartholemeusz in
Business Spectator also reported yesterday on the twist in the bank's negotiations.
JP Morgan has about $2 billion of Centro's debt, CBA about $1 billion and WestLB (allegedly seeking to greenmail other banks into paying it out) less than $200 million.
The banks and Centro agreed to a new deadline of December 15 to resolve the firm's funding.