Shopping centre group Centro is looking to the future after surviving a legal challenge that threatened to end its long fight against massive debts incurred during the global financial crisis.
The NSW Supreme Court on Friday approved the schemes of arrangement necessary for Centro’s complete restructure that will lead to its $2.7 billion debt being cancelled by senior lenders in exchange for the controlling interest in its 123 shopping centres.
The approval was delayed by action from the company’s former auditors PricewaterhouseCoopers, which are involved in a class action against Centro.
The delay threatened Centro’s future, with its debt set to mature on December 15.
But the defeat of PwC’s action on Friday means that December 15 is now the date at which a newly structured Centro, to be known as Centro Retail Australia, will begin trading on the Australian share market.
Centro Group chief executive Robert Tsenin said it was a historic day for the troubled shopping centre owner.
“I really want to put behind, and I think everybody at Centro, wants to put behind the last few years which have been very gruelling for everybody,” he told reporters.
“This is a great company that’s going to be set up, hopefully we will be the leader in our market segment.”
Under the restructure, Centro Retail Group and Centro Properties Group will be merged into Centro Retail Australia, which will own or manage $7 billion worth of shopping centre assets across Australia.
Mr Tsenin said there was interest from third parties in some of those assets, but was coy when asked whether Centro had been approached by potential suitors.
“If someone approaches you at a cocktail party and says `Gee I think you’ve got good assets’, is that an approach?
“Nobody has formally approached me for some time with anything,” he said.
“I hear through back channels that people are interested, but that’s all I know.”
And after four years of struggling for survival, Centro staff were set to celebrate, Mr Tsenin said as he concluded a teleconference with reporters.
“I’m looking forward to going out and celebrating with the staff who have worked tirelessly to get up to this, so I’m signing off now.”
