TECHNICAL OLYMPIC GROUP?s management informs the investment community that US subsidiary TOUSA Inc. announced on February 5th 2008 that on January 30, 2008, John R. Boken, officer of Kroll Zolfo Cooper LLC,, was appointed as TOUSA?s Chief Restructuring Officer (CRO). Pursuant to a Services Agreement dated January 29, 2008, Mr. Boken and KZC are authorized to make decisions with respect to all aspects of the management and operation of TOUSA?s business, in such manner as he deems necessary or appropriate in his sole discretion in a manner consistent with the business judgment rule and the provisions of local law and the United States Bankruptcy Code applicable to the obligations of persons acting on behalf of corporations, subject only to appropriate governance by the Board in accordance with their charters, bylaws, other governing documents of the Company and its subsidiaries, which filed chapter 11 petitions and applicable state law.
The agreement is on a month to month basis. KZC is to be paid on an hourly basis with rates for professional staff ranging between $200 to $775 per hour. KZC will also be eligible to receive, subject to Bankruptcy Court approval, a consummation fee of $3.5 million if TOUSA succeeds in obtaining a consensual restructuring, compromise and/or extinguishment of a substantial amount of its existing indebtedness or a final judicial order approving a plan of reorganization under chapter 11 or a sale of substantially all of TOUSA?s assets under U.S. Bankruptcy Code Section 363.
As a reminder, on January 31, 2008, subsidiary TOUSA, Inc. issued a press release announcing that it had received interim court approval to borrow as much as $135 million from Citigroup Global Markets, Inc.
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.