NATIONAL: International shopping centre conglomerate Centro faces collapse after accruing more than $3.9 billion of debt.
The company, whose Australian operations are home to such brands as Myer, David Jones, Target and Kmart, has now been given till February 15 to come up with a plan to salvage the situation after it failed to refinance billions of dollars of debt on the US credit markets.
According to reports in Fairfax newspapers a fire-sale of assets is likely, with a $300 million to $400 million portfolio of US shopping centres expected to be looked at first.
Centro chief executive Andrew Scott said the company would now undertake a strategic review to work out the best way to settle the company's financial problems.
He said he was confident Centro could refinance by the deadline.
Centro operates more than 50 shopping centres across Australia while its New Zealand arm owns assets in Auckland, Wellington and Christchurch.
PIC: Wendell Teodoro.