Fletcher Building Investors Brace For More Bad News
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Standby for more bad news from Fletcher Building as losses from at least two dodgy projects blow past previous estimates.
The company Thursday asked the ASX and NZX to halt trading in its shares until Monday to allow it to review the figures and issue a statement.
In an announcement to the NZX on Thursday morning, Fletchers said its board now expected those losses to be larger and reviews were continuing.
“Once the extent of those further losses is determined and provided for, it is expected that this would result in a breach of one or more of the covenants in the group’s financing arrangements,” the statement said.
Trading will resume on Monday when the review and its details will be released.
The shares rose more than 1.2% on the ASX yesterday to end at $7.15, but fell more than 1% on the NZX to end at $NZ7.77. Fletcher was due to release its interim financial report on February 21.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.