TECHNICAL OLYMPIC S.A.
NYSE to Suspend Trading in TOUSA Securities; Company to Appeal the Decision
TECHNICAL OLYMPIC GROUP?s management informs the investment community that NYSE Regulation Inc. ("NYSE Regulation") informed TOUSA Inc. (the ?Company?) that its common stock ?ticker symbol TOA- and debt securities will be suspended on Monday, November 19, 2007 prior to market open. The Company is currently making arrangements for its common stock and debt securities to be traded on alternate markets.
In accordance with NYSE rules, the Company intends to appeal the NYSE Regulation decision to pursue the delisting of the Company's common stock by requesting a review of the decision by a committee of the board of directors of NYSE Regulation. The Company may not be successful in its efforts.
The decision was reached in view of the fact that the Company was previously notified by NYSE Regulation that it had fallen below the NYSE continued listing standard for an average closing price of less than $1.00 over a consecutive 30 trading day period. In addition, NYSE Regulation also considered the "abnormally low" trading level of the common stock, which closed at $0.12 on November 15, 2007, with a resultant market capitalization of $7.2 million.
Furthermore, the NYSE noted that the Company has also fallen below the NYSE's continued listing standard for average market capitalization of less than $75 million over a consecutive 30 trading day period and stockholders' equity of $75 million based on its recently reported results for the quarter ended September 30, 2007.
The NYSE listed debt securities that will be suspended are:
TOA10Y TOUSA, INC. 9.000% NTS 7/1/2010
TOA10Z TOUSA, INC. 9.000% NTS 7/1/2010
TOA11 TOUSA, INC. 7.500% NTS 3/15/2011
TOA12 TOUSA, INC. 10.375% NTS 7/1/2012
TOA15 TOUSA, INC. 7.500% NTS 1/15/2015
During the three months ended September 30, 2007, the Company abandoned its rights under certain option contracts which resulted in a reduction of 9,400 optioned homesites and reduced future cash outflows by more than $700 million. In connection with the abandonment of its rights under these option contracts, the Company forfeited cash deposits of $166.9 million and had letters of credit of $91.2 million drawn, subsequent to September 30, 3007, which increased the Company's outstanding borrowings.
The Company is considering all available in and out of court restructuring and reorganization alternatives, including a possible Chapter 11 filing. Such alternatives include, among other things, restructuring its capital structure through the exchange of some or all of its outstanding indebtedness for equity in the Company.
This press release contains forward-looking statements. TOUSA wishes to caution readers that certain important factors may have affected and could in the future affect the Company?s actual results and could cause the Company?s actual results for subsequent periods to differ materially from those expressed in any forward ? looking statement made by or on behalf of the Company.
More information is available at the website of the US Securities and Exchange Commission, www.sec.gov as well as at the website of the subsidiary company, www.tousa.com.
In accordance with NYSE rules, the Company intends to appeal the NYSE Regulation decision to pursue the delisting of the Company's common stock by requesting a review of the decision by a committee of the board of directors of NYSE Regulation. The Company may not be successful in its efforts.
The decision was reached in view of the fact that the Company was previously notified by NYSE Regulation that it had fallen below the NYSE continued listing standard for an average closing price of less than $1.00 over a consecutive 30 trading day period. In addition, NYSE Regulation also considered the "abnormally low" trading level of the common stock, which closed at $0.12 on November 15, 2007, with a resultant market capitalization of $7.2 million.
Furthermore, the NYSE noted that the Company has also fallen below the NYSE's continued listing standard for average market capitalization of less than $75 million over a consecutive 30 trading day period and stockholders' equity of $75 million based on its recently reported results for the quarter ended September 30, 2007.
The NYSE listed debt securities that will be suspended are:
TOA10Y TOUSA, INC. 9.000% NTS 7/1/2010
TOA10Z TOUSA, INC. 9.000% NTS 7/1/2010
TOA11 TOUSA, INC. 7.500% NTS 3/15/2011
TOA12 TOUSA, INC. 10.375% NTS 7/1/2012
TOA15 TOUSA, INC. 7.500% NTS 1/15/2015
During the three months ended September 30, 2007, the Company abandoned its rights under certain option contracts which resulted in a reduction of 9,400 optioned homesites and reduced future cash outflows by more than $700 million. In connection with the abandonment of its rights under these option contracts, the Company forfeited cash deposits of $166.9 million and had letters of credit of $91.2 million drawn, subsequent to September 30, 3007, which increased the Company's outstanding borrowings.
The Company is considering all available in and out of court restructuring and reorganization alternatives, including a possible Chapter 11 filing. Such alternatives include, among other things, restructuring its capital structure through the exchange of some or all of its outstanding indebtedness for equity in the Company.
This press release contains forward-looking statements. TOUSA wishes to caution readers that certain important factors may have affected and could in the future affect the Company?s actual results and could cause the Company?s actual results for subsequent periods to differ materially from those expressed in any forward ? looking statement made by or on behalf of the Company.
More information is available at the website of the US Securities and Exchange Commission, www.sec.gov as well as at the website of the subsidiary company, www.tousa.com.