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Subprime fall-out

Centro crisis deepens as chief goes

By Virginia Marsh in Sydney

Published: January 15 2008 02:22 | Last updated: January 15 2008 17:40

The crisis at Centro Properties deepened on Tuesday when the heavily indebted Australian investment group abruptly replaced its chief executive and admitted to disagreements with its bankers over the status of its liabilities.

The Melbourne-based group, which is struggling to refinance some A$3.9bn ($3.5bn) in short-term debt, said it disputed suggestions from one set of creditors that it had defaulted on a $450m private placement.

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