(Reuters) - New Zealand's largest construction company Fletcher Building Ltd <FBU.NZ> said on Thursday it had received a waiver of the breach of covenants under its U.S. Private Placement (USPP) funding arrangements, subject to conditions it expects to satisfy over the next few days.
The breach of covenants arose primarily from provisions made for expected losses in the company's building and interiors division, Fletcher had said last month. It had received a waiver from its bank syndicate.
The company said it is now discussing with both its bank syndicate and USPP noteholders the terms of its funding arrangements, and will continue to target the end of March 2018 to complete the amendment process.
However, if it does not agree on the amendments by March 31, it will need to seek an extension of the waiver from the bank syndicate and the USPP noteholders.
The company had said it would wind down its commercial construction business due to mounting losses, and flagged losses of NZ$660 million ($474.87 million) for building and interiors in fiscal 2018.
Fletcher posted a net loss of NZ$273 million for the six months to Dec. 31, compared with a net profit of NZ$176 million for the same period the previous year.
(Reporting by Nicole Pinto in Bengaluru; Editing by Stephen Coates)
