Sayers Group pulling together Metricon rescue as states assess bailout options

A new taskforce has been set up in Victoria to examine the exploding cost crisis in the home building sector in the wake of Metricon rumours.

A new task-force in Victoria has been set up to examine the home building sector’s growing costs crisis.

It comes after Metricon’s owners tipped $30m into the business to show confidence in the building giant’s future.

The Sunday Herald Sun can reveal that a Residential Construction Working Group will include government, business and union representatives and iscurrently establishing terms of reference.

Its creation comes amid concerns about the financial stability of Metricon, which is trying to negotiate changes to governmentcontracts due to soaring prices of steel, timber and cement.

On Friday, its owners announced a $30m cash injection to provide confidence and head off these rumours.

The move led the building giant’s bank, CBA, to double its credit facility in a sign of ­increased confidence in the company’s future.

Acting chief executive Peter Langfelder said rumours were beginning to affect the company, and Metricon’s owners “wanted to demonstrate in real dollars – their own” that they weren’t going anywhere.

Carlton president Luke Sayers has pulled together the funding deal. Picture: John Feder

“We have previously said that our company has a proven history of success and remains profitable and viable and that we have the full support of our key stakeholders,” he said.

“This significant injection of capital by the owners demonstrates to our customers, employees, subcontractors and suppliers our confidence in the viability, profitability and future of the Metricon business.”

Metricon has also been sounding out new investors to provide an emergency cash ­injection, in a deal that could be sealed as early as next week.

Work on that package, put together by Carlton president Luke Sayers, and news of the $30m boost came after the ­nation’s biggest builder was forced to again deny speculation that it was near collapse, following crisis talks with the NSW government.

Metricon is doing the construction on this Wollondilly home which is months behind schedule and over budget.

Workers on Metricon construction site on in Mt Waverley. Picture: Kiel Egging

Melbourne-based Metricon hired Sayers Group – an investment and consultancy firm headed by Mr Sayers – to chart a path forward and line up new investors.

Mr Sayers, a former PricewaterhouseCoopers executive, was hired by Metricon founder Mario Biasin whose sudden death this month raised fears about its viability.

Sayers Group is working on a package that would let investors provide Metricon with loans. The lenders will be repaid or given a stake in the business.

A potential deal will be ­reviewed by the Metricon board after Mr Biasin’s memorial service next Thursday.

The nation’s building industry is being crunch by soaring material costs and fixed price contracts. Picture: Mark Wilson

Concern over the viability of Metricon has been so great the NSW building regulator sought legal advice around the business being forced into insolvency by major creditors, The Australian reported.

Metricon has repeatedly denied it faces solvency issues.

Earlier on Friday, chief executive Peter Langfelder said it was “business as usual”. He said the NSW meeting ­focused on general pressures on the building industry.

It is believed Metricon did not seek a bailout, and the NSW regulator is not in a position to approve one. It did not seek a bailout from Victoria ­either, where 2318 of its 4123 construction projects are.