Thursday, February 15, 2018

SKYCITY signals legal fight over NZICC delay

This explains the stoush between Sky City & Fletcher Building over FBUs failure to finish the Convention Centre on time. Go here for the full article.

The NZICC under construction at Auckland.

SKYCITY has signalled a probable legal fight with contractor Fletcher Construction over the delay to the completion of the New Zealand International Convention Centre (NZICC).
In its interim results released today, SKYCITY said the delivery date of mid-2019 of the NZICC and Hobson Street hotel projects would be six months after the contracted date of January that year. That is double the initial three month delay announced last year.
SKYCITY chief executive Graeme Stephens told the Ticker this morning his company was entitled to claim damages because of the delay, which he had always considered to be six months.
“We are flagging that now because we are getting to the phase of the construction where the end is in sight,” he said.
“Nothing is currently happening but we are flagging the liquidated damages that we are entitled to and, simultaneously, Fletchers, which would be likely to challenge our ability to claim them.”
In its interim results, SKYCITY said: “We remain comfortable with our contractual arrangements, which provide for liquidated damages that should mitigate our losses through delay, but legal challenges from Fletcher Construction are possible.”
Stephens added he wanted to be transparent about the possibility of legal action as “there is going to be some degree of claiming and counterclaiming when we get to the end”.
The delay followed ructions at Fletcher Construction last year, which saw its share price plunge in July after a profit downgrade and the immediate departure of its chief executive, Mark Adamson.
SKYCITY said today it had noted a “positive change” over the past six months in the construction of its two projects with Fletchers.
“The overall programme is well advanced with the core of the Hobson Street hotel now up to the eighth floor (of thirteen) and the slab for the final floor in the NZICC nearing completion,” said the company.

“Overall, we expect our investment in the projects to be in-line with our original budget. We continue to escalate our sales and marketing efforts to confirm the pipeline of convention bookings and, pleasingly, we have secured six major international conferences for 2020.”

Sky City Entertainment Group @ Share Investor

Sky City Entertainment Group Ltd: The Americas Cup
Share Investor's 2016 Stock Picks
Sky City gets the 2nd deal
Sky City Expansion: Adelaide Spreads on the Riverbank
Sky City to pay for National Convention Centre
Share Investor discusses Convention Centre proposal with CEO Nigel Morrison
SKC Convention Centre power-point slide illustrations & SKC submission to Auckland City Council
Sky City Gaming: Morningstars look at Sky City's gaming
Share Investor's Total Returns: Sky City Entertainment Group Ltd
Sky City Entertainment Group Ltd: Presentation to Macquarie Group
Morningstar Revalues Sky City Entertainment Group
Guest Post - Michele Hewitson Interview: Nigel Morrison
Failed Sky City bid for Christchurch Casino good news for Shareholders
Sky City Entertainment Group Ltd: Christchurch Casino bid falls short of Investment Criteria
Sky City Entertainment Group Ltd: Never mind the width feel the volume
Sky City Annual Meeting & 2011 - 2012 Profit Forecast
Stock of the Week: Sky City Entertainment Group Ltd
Sky City set to lose National Convention Centre bid
Sky City Entertainment Group: Australian Acquisition on the Cards?
Sky City Entertainment Group Ltd: 2010 Full Year Profit Analysis
Sky City Entertainment Group 2010 Full Year Profit Preview
Chart of the Week: Sky City Entertainment Group Ltd
Share Investor discusses Convention Centre proposal with CEO Nigel Morrison
Share Investor Q & A: Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Sky City Convention Centre Expansion a Money Loser: Part Two
Sky City Convention Centre Expansion a Money loser

Discuss SKC @ Share Investor Forum

Share Investor 2018

No comments:

Post a Comment

Comment on Share Investor Stuff