CAPE TOWN - MURRAY & Roberts, which participated in a joint venture to construct the Al Mafraq Hospital in Abu Dhabi, said it would pursue legal defences in the courts in Dubai and South Africa, following an unexpected draw-down by the client of performance and loan guarantees of AED474 million (R1.97 billion).
This had placed the joint venture account into overdraft of an equivalent amount. M&R said yesterday in a statement that the pay-out under these bond securities
“is not expected to have any income statement impact, nor any direct cash flow implications for the group.” Early in 2020, Habtoor Leighton Group/Murray & Roberts Contractors (HLMR) joint venture submitted a claim against its client for the balance of the contract amount in the Abu Dhabi court.
This claim was stayed on two occasions by mutual agreement, while the parties negotiated to settle the claim. These negotiations included having a third-party expert evaluate the amounts in dispute, which expert issued its report yesterday and found substantially in favour of HLMR.
BUSINESS REPORT