Under-fire Fletcher Building has secured a crucial waiver from one of its United States lenders, and has until the end of the month to finalise new funding terms.
In the wake of going public on the mounting losses of its Building + Interiors division, which are at present standing at $952million spread over two financial years, Fletcher had broken some banking covenants with its United States Private Placement (USPP) funding arrangements and with a separate banking syndicate — which equated to $2.4 billion in loans or loan facilities.
Fletcher said in a market update on Friday it had received a waiver of the breach of covenants under its United States Private Placement funding arrangements, subject to conditions, which it expects to satisfy over coming days.
Fletcher Building had received a similar waiver from its bank syndicate on February 13.
Fletcher has until March 31 to complete the amendment process, after which it would have to seek waivers again, from the banking syndicate and USPP noteholders.
