Centro says reports loan deal not agreed are wrong

MELBOURNE, June 2 (Reuters) - Centro Properties Group (CNP.AX), one of Australia's highest profile casualties of the global credit crunch, said on Monday newspaper reports its banks did not agree on loan conditions was wrong.

The Age and Sydney Morning Herald newspapers said on Monday that Centro's bankers had failed to agree on conditions that would allow an extension on about A$2.8 billion ($2.6 billion) of debt.

A Centro spokesman said the report was absolutely wrong.

Although banks agreed earlier this month to a loan extension in principle, it was dependent on a number of conditions being met, including the banks agreeing to the process for refinancing or asset sales.

Centro, which owns about 700 U.S. shopping malls, borrowed heavily last year to fund a rapid expansion in the U.S., but ran into trouble after credit markets dried up and it was unable to refinance expiring debt. ($1=A$1.05) (Reporting by Victoria Thieberger)