Al Habtoor Leighton will likely ask its parent company Leighton Holdings Ltd (ASX:LEI) for a capital injection if it cannot pay its legacy projects on schedule.
The head of Leighton’s subsidiary, Laurie Voyer, has told Reuters that the company requires standby facilities if it doesn’t get paid or something gets delayed.
Last week Leighton launched a $757 million capital raising after slashing its full year guidance by more than $900 million.
Earlier this year the property developer also took 11 per cent off the book value of its interest in Al Habtoor Leighton to $845 million.
According to Reuters Mr Voyer has not disclosed how much Al Habtoor Leighton is owed but says most contractors in the region have an issue with their legacy projects, and the company is working with clients to sort out pending issues.
At the end of last week shares in Leighton Holdings eased 0.2 per cent to close at $24.88.
In the six months to 31 December 2010, Leighton Holdings generated a net profit of $218 million.
LEI Price at posting:
$24.88 Sentiment: None Disclosure: Held
