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LONDON-Multiplex has suspended trading its shares today amid announcements that chairman John Roberts and executive director Noel Henderson have resigned. Trading has been halted while the company spends the weekend assessing further losses on the construction of the Wembley national football stadium.

Earlier this year, the Roberts family, which owns a sizeable share of the company, announced it would cover losses on the construction of the stadium. But the position on Wembley appears to have worsened. A company statement today said that “it has received an internal report that indicates that the margin position on the Wembley project may have deteriorated significantly.”

More concerning for investors was an admission by the company that it is does not know what the position is. The statement added: “The Board has determined that it presently does not have sufficient information to form a view as to the likely impact on earnings and has requested further analysis be conducted today and over the weekend. Given that the possible outcomes include a loss position significantly greater than that which would be covered by the $50-million Roberts-family indemnity, Multiplex Group has requested a trading halt until it is able to ensure the market is properly informed.”

The company also announced that John Roberts has resigned as executive chairman and that an independent chairman would be appointed. Noel Henderson, executive director, has also resigned.

The statement adds: “The Board has previously resolved to seek a new independent director, preferably with property experience in the United Kingdom. Shortlisted candidates for this appointment have been identified.”Today’s announcements are the latest in a long list of bad news coming out of Multiplex. As GlobeSt.com reported at the time, the contractor-developer last week shocked the market with the announcement that it sold its 12.5% share in the prime London White City development. The sale raised fears of another profit downgrade amid doubts about the company’s operations in the UK. Multiplex issued a subsequent statement denying speculation it was on the brink of insolvency.

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