Centro Retail class action settlement looms
Centro Retail Australia has requested an ASX trading halt of its stapled securities.
It’s pending an announcement regarding class action litigation settlement discussions.
CRF has a halt in place until May 10, or earlier subject to any resolution to the $200 million class action.
A Federal Court trial began in March and is due to finish by the end of July after two investor class actions, one run by Maurice Blackburn and the other by Slater & Gordon, began regarding Centro’s 2007 accounting problems and its near-fatal collapse.
Shareholders allege the now defunct Centro Properties and Centro Retail breached continuous disclosure obligations and engaged in misleading and deceptive conduct in 2007 – something that both entities have denied.
Centro Retail is now part of the new merged entity Centro Retail Australia, the responsible entity for the Centro group.
A Centro Retail Australia lawyer indicated to the court that his client would likely argue it was not liable for the potential liabilities of the old Centro entities.
Last week Centro indicated trading activity had slowed at its $4 billion portfolio of shopping centres over the last 12 months, but that it was confident it could meet its full-year financial forecasts.
The company, which is the largest single landlord of Coles and Woolworths supermarkets, confirmed it was on track to meet its inaugural full-year earnings forecast of 15.3¢ per security, and a distribution of 6.4¢.
