Centro Properties fears collapse
Posted
Shopping centre owner Centro Properties Group has warned it may fall victim to the subprime crisis.
The company has told investors at its annual general meeting in Melbourne that it could go into receivership if its lenders do not extend billions of dollars in loans due next month.
Centro has asked its bankers for an extension on the short-term loans which are due on December 15.
The shopping centre owner relied on high levels of debt to expand but was hit by the property slump in the US and the global credit crunch.
At 11:30am AEDT its shares were down more than 10 per cent to seven cents
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