diff --git a/org.eclipse.m2e.core/src/org/eclipse/m2e/core/internal/M2EUtils.java b/org.eclipse.m2e.core/src/org/eclipse/m2e/core/internal/M2EUtils.java
index 3fb33d41cb..a7cb66a7f5 100644
--- a/org.eclipse.m2e.core/src/org/eclipse/m2e/core/internal/M2EUtils.java
+++ b/org.eclipse.m2e.core/src/org/eclipse/m2e/core/internal/M2EUtils.java
@@ -61,7 +61,8 @@ public static void createFolder(IFolder folder, boolean derived, IProgressMonito
         }
       } catch(CoreException ex) {
         //Don't fail if the resource already exists, in case of a race condition
-        if(ex.getStatus().getCode() != IResourceStatus.RESOURCE_EXISTS) {
+        int code = ex.getStatus().getCode();
+        if(code != IResourceStatus.RESOURCE_EXISTS && code != IResourceStatus.PATH_OCCUPIED) {
           throw ex;
         }
       }