Leighton JV settles with client

Habtoor Leighton reaches 'amicable' deal with Qatar client on payment owing.

Leighton Holdings' (LEI) Middle Eastern joint venture Habtoor Leighton Group has reached an "amicable agreement" about payments outstanding from a Qatar-based client.

Leighton said the agreement includes the return of all liquidated bonds which were called from May to July 2013 and agreement on contract values for completed and ongoing projects.

The client has paid approximately 40% of money outstanding on the signing of the agreement and will pay a further 20% over the next few weeks, Leighton said.

The sum owing will be repaid over the next 18 months after handover of the remaining projects to the client.

Leighton said the deal is materially in line with Habtoor Leighton Group's expected financial result for the projects and significantly reduces the risk exposure of the 45 per cent owned associate to Leighton.

In October, Leighton shares fell 10 per cent after media reports the company was aware of extensive bribery, corruption and cover-ups in its international divisions.

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