The largest home building company in Australia has denied reports that it is in financial difficulty.
In a statement released following a press conference on Thursday three days after the death of the company’s co-founder and CEO Mario Biasin earlier this week, Metricon Acting COE Peter Langfelder attempted to dispel ‘baseless rumors’ that it is in crisis talks with its bank, major clients and subcontractors.
“Metricon is a long-term, viable business, with a strong history of performance,” Langfelder said.
“All our contracts are profitable, and we are up to date with all our payments: to contractors, suppliers, employees and trades.”
The press conference followed News Corporation reports that the company had been in crisis talks on Wednesday night and had been dealing with issues related to its senior lender – the Commonwealth Bank – since March.
The reports also suggested that the company is in talks which major clients about the situation.
Established in the Melbourne suburb of Caulfield in 1976, Metricon is Australia’s largest home builder.
It is currently building more than 4,000 homes across Australia’s eastern seaboard and employs around 2,500 people.
It is delivering contracts worth $195 million as part of Victoria’s $5.3 billion social housing Big Housing Build.
Whilst Metricon is predominately focused on the detached home segment of the market which has enjoyed record volumes of work courtesy of COVID stimulus programs, builders in this segment are still needing to cope with surging costs for materials and trades.
But Langfelder denies the reports about crisis talks with its banks, adding that its relationship with CBA is longstanding.
“We have a strong and positive relationship with our bankers and all facilities are in term, and with headroom,” he said.
Langfelder was joined by suppliers Mario Vallese from Beston Plumbing and Southern Star Windows’ Paul Armstrong who pledged their support for Metricon and urged others to take their lead.
The reports cap off a difficult week for Metricon and its staff after the company’s co-founder and CEO Maria Biasin died unexpectedly on Monday.
Biasin is survived by his wife and four children.