Centro Properties stock stabilises
Wednesday, December 19, 2007/
After taking a hammering on the sharemarket over the past two days, Centro Properties Group’s share price has improved today.
Centro’s stock dropped 75% to $1.36 on Monday and then fell further yesterday to as low as 42 cents. At 12.30am today the stock was selling for $1.31.
The company has appointed external advisers to guide a likely new year asset sale to raise equity to reduce its gearing and secure refinancing before a 15 February deadline.
Embattled chief executive Andrew Scott has accepted personal responsibility for the crisis that has put the company’s survival in jeopardy and destroyed the nest eggs of many staff – and investors.
According to newspaper reports, a third of the company’s 1500 staff hold stock. Not to mention the 4.95 million securities held by Scott, which were once worth more than $50 million and now would be worth about $4 million. Against that he reportedly has a $10 million loan.