Leighton slams report on bid to recover $1.1b
In a statement to the ASX, Leighton said the report contained inaccuracies about settlements between the Al Habtoor Leighton Group (HLG) and clients.
"Leighton reiterates that Fairfax has once again been inaccurate and unbalanced in its representation of Leighton's operations, governance, values and accounting," the company said. Leighton dismissed several aspects of the report, but did not deny the central allegation that it was given advice by consultants and staff that warned Al Habtoor Leighton would not recover all of the $1.1 billion it claims to be owed for construction work.
Instead Leighton would say only that it held a range of advice about recovering debts and the joint venture was entitled to uphold the value of its claims.
Leighton has pushed out by three years the timeline for the recovery of a substantial number of payments. Fairfax Media on Thursday confirmed Leighton's loans to HLG were not secured by any collateral from the Middle East company.
"Loans are secured by assets, not borrowings, as reported by Fairfax," Leighton stated. "This information has been pointed out to Fairfax and ignored."
Before publication, Leighton referred Fairfax to page 18 of its results to answer questions about loans and security. That page states the loans to HLG are secured by borrowings.
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The main issue is that Leighton Holdings has rejected a Fairfax Media report claiming that its Middle East joint venture would struggle to recover $1.1 billion it is owed. Leighton stated that the report contained inaccuracies about settlements with clients.
Leighton Holdings did not deny the central allegation that it was advised by consultants and staff that the Al Habtoor Leighton Group might not recover the full $1.1 billion. However, they emphasized that they hold a range of advice on recovering debts and are entitled to uphold the value of their claims.
Leighton Holdings has extended the timeline for the recovery of a substantial number of payments by three years, indicating a longer period for debt recovery efforts.
According to Leighton Holdings, the loans to the Al Habtoor Leighton Group are secured by assets, not borrowings, contrary to what was reported by Fairfax Media.
Leighton Holdings criticized Fairfax Media for being inaccurate and unbalanced in its representation of the company's operations, governance, values, and accounting.
Leighton Holdings received a range of advice about recovering debts, but they did not specify the details of this advice in their statement.
Before the publication of the report, Leighton Holdings referred Fairfax Media to page 18 of its results to clarify questions about loans and security, which states that the loans to HLG are secured by borrowings.
Leighton Holdings stated that loans are secured by assets, not borrowings, and pointed out that this information had been communicated to Fairfax Media but was ignored in their report.
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