Fletcher trade halt extended

Fletcher Building has extended its share trading halt to tomorrow, as it works through a review of mounting losses from its Building + Interiors (B+I) division.

Separately, construction client SkyCity last week signalled its Auckland conference centre and Hobson St hotel would to be ``in line with original budget ... but legal challenges from Fletcher Construction are possible''.

``Construction contracts provide for liquidated damages which should mitigate losses to SkyCity through delay,'' the company said in its half-year report.

Fletcher shares, at $7.70, were last Friday placed on a trading halt on expectations Fletcher would update the market yesterday, but before the NZX opened, the construction company pushed the extension out to tomorrow; unless the review is completed and released today.

B+I losses for the previous financial year were $292 million.

It is a forecast further $160 million loss which will be adjusted upward, the lion's share credited to the Auckland conference centre and Christchurch's Justice Precinct, two of 19 mainly fixed contract projects.


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