Dec. 2 (Bloomberg) -- Centro Properties Group, whose debt- fueled U.S. buying spree backfired with the global financial crisis, won final court approval for a plan to wipe out debt and hand assets to creditors.
The Supreme Court of New South Wales approved the reorganization, Centro Properties said in a statement to the stock exchange today. The A$2.7 billion ($2.76 billion) of senior debt that matures on Dec. 15 will be canceled and senior lenders will receive the company’s Australian assets and interests, it said.
Centro first announced a planned restructuring in 2009 after the financial crisis caused property values to plummet and borrowing costs to soar. Share and debt holders of Centro Properties and listed unit Centro Retail Trust approved the proposal last week, which will give lenders control of the new Centro Retail Australia trust in exchange for forgiving debt.
“This is a major achievement for Centro and its stakeholders,” Centro Properties Chairman Paul Cooper said in the statement.
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