Fletcher Building has today requested a trading halt of its shares and capital notes on the NZX and ASX exchanges.
The trading halt has been sought because the Company is in the process of reviewing the key projects in its Building and Interiors (B+I) business as part of the preparation of the Group accounts for the six months ended 31 December 2017.
Although the project reviews are not yet complete, the current expectation of the Board is that there will be further material losses in the B+I business beyond what was provided for in October 2017. 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 Company expects the trading halt to continue until the commencement of trading on Monday 12 February 2018 prior to which it will provide to the market the results of its review.