TECHNICAL OLYMPIC S.A.
Response to the Hellenic Capital Markets Commission letter regarding printed and electronic press articles concerning the Group΄s subsidiary TOUSA Inc.
In response to the Hellenic Capital Markets Commission letter with protocol number 190/17-1-2008 concerning printed and electronic press articles according to which, our subsidiary TOUSA Inc. failed to make the interest payments of the $ 200,000,000 in aggregate principal amount of its 7.5% Senior Subordinated Notes due 2015, our Company has notified the Hellenic Capital Markets Commission with its letter under protocol number 3205/17-1-2008 the following:
According to its 8-K report filed with the US Securities and Exchange Commission (SEC), our subsidiary TOUSA Inc. failed to make its scheduled interest payments due January 1, 2008, of the $ 300,000,000 in aggregate principal amount of its 9% Senior Notes due 2010 as well as of the $ 185,000,000 in aggregate principal amount of its 10 % Senior Subordinated Notes due 2012, and also failed to make the scheduled interest payment due January 15, 2008 of the $ 200,000,000 in aggregate principal amount of its 9% Senior Subordinated Notes due 2008.
The failure to pay the interest on such Notes within 30 days of the due date could result in the indebtedness represented by the Notes becoming immediately due and payable and as a result cause other indebtedness of the Company to be accelerated and become immediately due and payable.
It should be noted that the failure to make the aforementioned interest payments at the due dates on January 1 and 15, 2008, constitutes the immediate application of the cash flow program set by our subsidiary TOUSA Inc. and is part of the financial restructuring and the reorganization of our subsidiary, including the possibility of placing itself under the protection of chapter 11 concerning the bankruptcy act in the USA. All of the above information is published in the 8-K Form of TOUSA Inc. dated 19-12-2007 which was filed with the US Securities and Exchange Commission (SEC) as well as in the Press Release of our Company TECHNICAL OLYMPIC SA (www.techol.gr)
In any event, as we have repeatedly stated in earlier announcements, mother Company Technical Olympic has no commitments of guarantee or pledges towards its subsidiary TOUSA and consequently does not carry any obligations against any of its subsidiary loans.
TOUSA Inc. ability to meet the obligations regarding its loans is directly depended upon the successful completion of all debt restructuring efforts and the chapter 11 filing.
As regards the financial impact on Group Technical Olympic from the current financial situation that subsidiary TOUSA Inc is facing, has already been accounted for at the Financial statements as at September 30, 2007 of our Company, which have been published and commented via the Press release dated 29-11-2007 (www.techol.gr).
Any subsequent financial impact on Group Technical Olympic will depend form the development of events in Tousa Inc. and will be disclosed immediately with a new press release.
More information is available at the website of the US Securities and Exchange Commission (SEC), www.sec.gov, as well as our subsidiary TOUSA website, www.tousa.com.
According to its 8-K report filed with the US Securities and Exchange Commission (SEC), our subsidiary TOUSA Inc. failed to make its scheduled interest payments due January 1, 2008, of the $ 300,000,000 in aggregate principal amount of its 9% Senior Notes due 2010 as well as of the $ 185,000,000 in aggregate principal amount of its 10 % Senior Subordinated Notes due 2012, and also failed to make the scheduled interest payment due January 15, 2008 of the $ 200,000,000 in aggregate principal amount of its 9% Senior Subordinated Notes due 2008.
The failure to pay the interest on such Notes within 30 days of the due date could result in the indebtedness represented by the Notes becoming immediately due and payable and as a result cause other indebtedness of the Company to be accelerated and become immediately due and payable.
It should be noted that the failure to make the aforementioned interest payments at the due dates on January 1 and 15, 2008, constitutes the immediate application of the cash flow program set by our subsidiary TOUSA Inc. and is part of the financial restructuring and the reorganization of our subsidiary, including the possibility of placing itself under the protection of chapter 11 concerning the bankruptcy act in the USA. All of the above information is published in the 8-K Form of TOUSA Inc. dated 19-12-2007 which was filed with the US Securities and Exchange Commission (SEC) as well as in the Press Release of our Company TECHNICAL OLYMPIC SA (www.techol.gr)
In any event, as we have repeatedly stated in earlier announcements, mother Company Technical Olympic has no commitments of guarantee or pledges towards its subsidiary TOUSA and consequently does not carry any obligations against any of its subsidiary loans.
TOUSA Inc. ability to meet the obligations regarding its loans is directly depended upon the successful completion of all debt restructuring efforts and the chapter 11 filing.
As regards the financial impact on Group Technical Olympic from the current financial situation that subsidiary TOUSA Inc is facing, has already been accounted for at the Financial statements as at September 30, 2007 of our Company, which have been published and commented via the Press release dated 29-11-2007 (www.techol.gr).
Any subsequent financial impact on Group Technical Olympic will depend form the development of events in Tousa Inc. and will be disclosed immediately with a new press release.
More information is available at the website of the US Securities and Exchange Commission (SEC), www.sec.gov, as well as our subsidiary TOUSA website, www.tousa.com.