The $700 million Sky City development in Auckland, including the international convention centre, is thought to account for $55 million of the $110 million downgrade. Photo: GettyTwo major construction projects - the Sky City development in Auckland and Christchurch's Justice Precinct - are thought to be behind Fletcher Building's $110 million downgrade. The $700 million Sky City development in Auckland, including the international convention centre, is thought to account for $55 million of the $110 million downgrade and the $300 million Justice Precinct in Christchurch is the other $55 million. Mr McIntyre noted Fletcher management had also outlined that in full-year 2018 there would be a further negative impact of around $10 million, probably related to cost overruns on the Sky City project. While Fletcher management had not provided a copy of its banking covenant, management had said the company was ''comfortably'' within banking covenants and target debt metrics, he said.

Source: Otago Daily Times March 21, 2017 17:02 UTC