SYDNEY (AFX) - Multiplex Group's founding shareholder, the Roberts family, said it has undertaken to indemnify the group up to 50 mln aud in respect to any loss that emerges on the Wembley Stadium project in London.
In a statement, Multiplex said the move demonstrates the Roberts family's support for the group and the project in particular.
"This indemnity demonstrates the confidence of the Roberts family in both the Wembley project and in the management's ability to recover claims," it said said, adding that the Roberts family does not believe any losses will emerge from the project and is confident claims will be sufficient to cover additional costs.
Last week Multiplex announced writedowns totally 68.3 mln aud relating to the London stadium project and also its West India Quay project in the same city.
The Wembley stadium project has been plagued with contractual disputes and speculation over whether it will be finished on time.
In notes attached to its half yearly accounts, Multiplex said the Wembley project has been written back to a break-even position due to uncertainty as to the final level of claims to be recovered from the client, sub-contractors and consultants.
"The board believes the quantum of claims ultimately received is likely to exceed the 45 mln stg of claims recognised to date to achieve the current break-even position and that a write-up will be possible in future periods as the claims are finalised," Multiplex said in the notes.
(1 usd = 1.27 aud)
bruce.hextall@xfn.com
blh/lmf
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
In a statement, Multiplex said the move demonstrates the Roberts family's support for the group and the project in particular.
"This indemnity demonstrates the confidence of the Roberts family in both the Wembley project and in the management's ability to recover claims," it said said, adding that the Roberts family does not believe any losses will emerge from the project and is confident claims will be sufficient to cover additional costs.
Last week Multiplex announced writedowns totally 68.3 mln aud relating to the London stadium project and also its West India Quay project in the same city.
The Wembley stadium project has been plagued with contractual disputes and speculation over whether it will be finished on time.
In notes attached to its half yearly accounts, Multiplex said the Wembley project has been written back to a break-even position due to uncertainty as to the final level of claims to be recovered from the client, sub-contractors and consultants.
"The board believes the quantum of claims ultimately received is likely to exceed the 45 mln stg of claims recognised to date to achieve the current break-even position and that a write-up will be possible in future periods as the claims are finalised," Multiplex said in the notes.
(1 usd = 1.27 aud)
bruce.hextall@xfn.com
blh/lmf
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
