News: Leighton prepares for legal stoush

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Leighton Holdings’ Limited (ASX:LEI)Middle Eastern subsidiary is taking legal action against Al Faisal Holding, over a $365 million construction project in Doha.

 

According to media reports, a dispute broke out last month between the parties as stage three of the Doha City Centre Expansion neared completion and Al Faisal Holding sought to cash in performance bonds on the project worth around $US100 million.

 

Habtoor Leighton has been building the project, including five hotel towers, for seven years.

 

Media reports says Habtoor Leighton was forced to pay around half of the value of the bonds to Al Faisal Holding, while the remaining half was placed in a special Treasury fund established by the Doha Courts.

 

It is understood the payments were made from Habtoor Leighton's own balance sheet and no fresh cash call was made on Leighton.

 

Leighton generated a net profit of $442 million in its 2012 financial year.